Recently, the video game Axie Infinity by Sky Mavis game company in Vietnam attracts many players around the world with the model of both playing and making money with NFTs. At one point, the total capitalization of AXS, the game’s token, reached $2.4 billion. However, the CEO of the company has denied calling himself a dollar billionaire because the token’s capitalization is different from the total capitalization of the company.
Associate Professor Carter thinks that the valuation of the company and the game’s token is different. “It’s not fair to say that it’s just a video game company, so just value it as you would for 30-year-old game companies like Blitzard or Activision,” he said.
He said, if the total capitalization of AXS is at $2.4 billion, the company should value only a fraction of that, explaining: “First of all, the company can have a token store and they have it in the company, it’s a tangible asset of the company if they find a way to sell that token on the market it might be difficult to sustain that $2.4 billion, because suddenly a huge amount of money is pouring in into the market, who will buy it, who will actually convert it. On the other hand, 2.4 billion represents how much people are willing to pay for that token right now. has little to do with the company.”
The program director of NUS FinTech Singapore (SG) also encouraged gaming companies using these NFTs to develop more educational content, beyond playing and creating wealth.