Cryptocurrencies have been around for a few years and, by now, they have made their mark in nearly every sector, including gaming. In the last few years, developers, and players have begun to consider how crypto tokens can be integrated into the gaming ecosystem. 

On various platforms, developers have started including crypto tokens to create novel experiences for players. For instance, a Cardano casino offers players the same gaming options like blackjack, slots, and live dealer games, leveraging blockchain technology to provide provably fair gaming. Telegram games like Hamster Wars reward players with tokens, and play-to-earn games like Axie Infinity where you can earn and trade crypto just by playing. These examples show that crypto is not only about payments but also about defining new ways that players can transact and interact within the virtual economy. 

But with all the noise surrounding cryptocurrencies, are these tokens suitable for gaming or are they just a marketing tool?

Mainstream Crypto Options for Gaming

Bitcoin (BTC)

Bitcoin is the original cryptocurrency and still the most recognized name. Some people started using it in gaming early on and Bitcoin worked well enough—online gambling platforms or certain peer-to-peer gaming marketplaces accepted it as payment. Its popularity meant that players could easily find places to spend or earn it.

However, Bitcoin wasn’t designed with gaming in mind. It’s slow compared to newer tokens, and transaction fees can quickly eat into smaller purchases. For in-game transactions, where players might only spend a few dollars at a time, Bitcoin’s costs and waiting times make it far less practical. 

Ethereum (ETH)

If Bitcoin was the introduction, Ethereum is the first chapter in the story of gaming and crypto. Unlike Bitcoin, Ethereum allows developers to create smart contracts and decentralized applications (dApps). This has opened up opportunities for in-game economies, where items, assets, or even entire games can run on Ethereum’s blockchain. Games like CryptoKitties and Gods Unchained were built using Ethereum, taking advantage of its programmable features to offer players unique, tradable in-game items.

But Ethereum has its challenges. Gas fees can be high, which makes smaller transactions less appealing. The network has also faced congestion issues during periods of heavy use. For games that rely on fast, low-cost transactions, Ethereum’s current structure can be a limitation. However, with upgrades on the horizon, including the shift to Ethereum 2.0 and the adoption of Layer 2 solutions, Ethereum’s role in gaming will likely continue to evolve.

Stablecoins (USDT, USDC, DAI)

Stablecoins, on the other hand, have carved out a more practical niche. These tokens are tied to the value of a real-world asset, most often the U.S. dollar, so their price doesn’t swing wildly like Bitcoin’s. This stability makes them well-suited for gaming environments where consistency matters. 

For example, players can use stablecoins to buy in-game items, pay for memberships, or trade collectibles without worrying about sudden price drops. In some competitive gaming settings, stablecoins are even used to distribute prize money, ensuring winners get a predictable payout.

Stablecoins aren’t perfect, though. Because they rely on centralized backing or complex algorithms, they’re not as decentralized as Bitcoin or other cryptocurrencies. There can also be regulation issues, depending on the country or platform. Even so, stablecoins are currently among the most practical tokens for in-game use, thanks to their reliability and relative ease of adoption.

Tokenized Gaming Economies: Play-to-Earn and NFTs

Play-to-Earn Tokens (AXS, SLP)

Play-to-earn tokens have introduced a new way for gamers to make money while playing. Popular games like Axie Infinity reward players with tokens such as AXS and SLP, which can then be traded or sold for real-world value. The concept is simple; as you play, you earn tokens that hold monetary value, giving gamers an incentive to invest time into these virtual economies.

Players are more engaged because they’re working toward a real goal, not just a high score. For some, these tokens have even provided a steady source of income. However, the system isn’t without its challenges. Play-to-earn models rely heavily on the return of players or ongoing demand for the tokens, which can lead to economic instability. 

NFT-Based Tokens (Enjin/ENJ, Rarible/RARI)

NFT-based tokens take gaming economies to another level by enabling actual ownership of digital assets. Traditional in-game items are locked within one ecosystem, but NFTs let players own, trade or buy items across different games. This has been made easier by platforms such as Enjin and Rarible which enable developers to create tokenized in-game items like a rare weapon, collectible card, or even a piece of virtual land. 

NFTs are a clear value proposition to players, as they can trade or show off their digital goods in a way that goes further than the typical in-game inventory. But, like any new technology, there are pros and cons. Some critics highlight the environmental impacts of blockchain networks or the speculative nature of NFT marketplaces. However, NFTs are still one of the most actionable uses of blockchain technology in gaming, and offer a new take on how players can interact with and earn money from their games.

Emerging and Experimental Tokens

Gaming-Specific Tokens (MANA, CHZ)

Gaming-specific tokens like MANA, which is powered by Decentraland, and CHZ (Chiliz) instead of attempting to become a universal cryptocurrency for all uses, these tokens are used specifically for particular platforms. Decentraland’s MANA is used to purchase virtual land, avatars, and other digital goods, while Chiliz is aimed at fan engagement in sports-related games, with fans being able to buy tokens that provide fan benefits or voting rights. 

The thing is that these tokens are more specific, and that’s why they are noticeable. They are not attempting to revolutionize the entire gaming industry; they are simply seeking to improve various gaming communities. However, due to their specific nature, they are prone to relying on the success of their parent companies. When a platform dies, so do the tokens associated with it. In general, such tokens can be rather useful if they are closely connected with a given game, but only if the platform behind the game remains popular and active.

Governance Tokens in DAOs

Governance tokens implement the concept of community control in gaming. They provide the holder the voting right to some of the game’s functions. This could include voting on updates to the game, new features, or even how the funds should be spent. It is a way of ensuring that the player has a real say in the development of the games that he or she plays, leading to a more united and passionate community. 

It is an empowering idea. Players are more likely to be more engaged with the games they play, and developers get valuable input from the players. However, this system is not without its issues. Not all the players are willing to take part in governance, and, in some instances, token voting can lead to power struggles or conflicts. When used correctly, governance tokens can be a good strategy to increase the level of player participation and commitment, but they need to be used properly in order not to cause division within the community.

Conclusion

Crypto tokens are still not fully understood in the gaming industry. While some tokens are useful, there are many problems to solve, such as optimization, legal aspects, and the currently confusing entry point for new players. Who knows? In the future, crypto tokens may play a greater role in improving the enjoyment, value, and creation of the game as technology progresses and the user interface improves.