Ethereum

Licensed Formula 1 Ethereum NFT Game Shuts Down

Licensed Formula 1 Ethereum NFT Game Shuts Down

In short

  • The licensed Ethereum-based F1 game Delta Time will be shut down this week.
  • Animoca Brands will give NFT holders replacement NFTs for another racing game, along with tokens and other benefits.

Formula 1 was one of the first sports leagues to enter the blockchain space, with the launch of Animoca Brands’ F1 game Delta Time in 2019. But after three years, the Ethereum-the game based on ends.

Animoca broke the unexpected news today, revealing that the game will abruptly cease operations at the end of Wednesday. According to a blog post, the company had “not been able to renew our license” with the racing league. It’s unclear how many total players the game has amassed – data from major NFT market OpenSea suggests that only around 1,800 unique wallets had NFTs from the game.

But the sudden demise of F1 Delta Time presents an interesting dilemma: what happens when a licensed crypto game or decentralized application (dapp)– which sold user-owned assets as NFTs to its players – is shut down due to the decision of an IP holder?

In this case, Animoca Brands hopes to appease NFT owners by offering replacement NFTs in another of its crypto racing games, REVV Racing, along with other benefits and rewards within the larger gaming ecosystem. being built around its REVV token.

REVV Racing is an unlicensed driving game similarly built around NFT collectibles, and it runs on Polygon, a sidechain scaling solution for Ethereum. F1 Delta Time car owners will instead receive NFT cars in REVV Racing, for example, and REVV Racing assets can be used to earn REVV Token rewards in a new betting pool.

Beyond REVV Racing, other games developed by Animoca that use the REVV token include the licensed crypto games MotoGP Ignition and Formula E: High Voltage, as well as the unlicensed game Torque Drive from Grease Monkey Games.

F1 Delta Time was one of the first notable crypto games to hit the market, and early NFT enthusiasts made what were, at the time, significant bets on the game.

For example, the pseudonymous investor MetaKovan (aka Vignesh Sundaresan) bought the game’s one-time edition “1-1-1” car in May 2019 for nearly 416 WETH (Wrapped Ethereum), worth around $113,000 at the time. This was the biggest game NFT sale of the year. MetaKovan would continue to buy “Everydays: The First 5000 Days” from Beeple for $69.3 million in March 2021.

In March 2021, Animoca also sold a “70th Anniversary Edition” NFT car for $265,000 worth of REVV tokens, and sold $1.8 million worth of in-game track segments for F1 Delta Time. Another NFT car in the game sold for $288,000 REVV in the secondary market that month.

Ultimately, however, F1 Delta Time did not generate as much secondary trading action as other notable crypto games. CryptoSlam shows less than $7m in total secondary market trades for F1 Delta Time NFTs, with volume dropping dramatically from a peak of over $1.5m in March 2021 to just over 15 000 dollars in January.

Compare that to over $4 billion in total NFT transaction volume for the leading Ethereum game. Axie Infinityand $366 million for Animoca’s own The sandboxan upcoming metaverse game.

In addition to developing and publishing crypto games, Animoca Brands is also a leading investor in NFT and metaverse startups, including OpenSea, NBA best shot Dapper Labs creator and Axie Infinity Sky developer Mavis. Animoca was valued at over $5 billion with its last funding round in January.

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