The threshold for user acquisition of chain game Dapps has always been an important topic of discussion among industry players.

Without a doubt, infrastructure and tool apps like WalletConnect can allow users who already own wallets and virtual currencies to log into games without barriers.

If the target users of a chain game are these crypto-native Web3 old users, then the barrier for user acquisition does not exist.

Unfortunately, there are too few crypto-native Web3 old users who also play games, which cannot support the revenue scale and continuous operation of a chain game.

Any game, whether it's a Web3 chain game or a traditional Web2 game, is doomed to fail if there is no continuous influx of new players. Relying solely on old players' continued spending and reinvestment will surely lead to a downward trend in traffic and revenue growth, as products have a lifecycle and old players have a fatigue curve.

Therefore, chain game dapps not only need to fully utilize infrastructures like WalletConnect to ensure that the newly acquired crypto-native users can log into chain games smoothly and without barriers,

but also need to leverage traditional game login methods (Google account/Apple account/Email account/phone number/Twitter or Telegram account) to smoothly bring in Web2 players who have never had wallets or virtual currency assets, guiding them step by step to open wallets, purchase virtual currency with fiat currency, and invest in and purchase game assets using virtual currency in the game. The most utilized part of this is smart contract wallets/account abstraction wallets, which automatically generate a wallet address for players to use after they log into the game using traditional Google accounts/Apple accounts/Email accounts/phone numbers/Twitter or Telegram accounts in the chain game dapp.

The barrier remains very high, and players may give up halfway due to the hassle.

To motivate these Web2 players to not fear hassle and learn to set up and use wallets, the biggest drive is that they can earn game tokens in the game, which need to be converted into fiat currency. This requires a wallet, then going to a decentralized exchange (DEX) or centralized exchange (CEX) to exchange game tokens for stablecoins like USDT, and then converting USDT into fiat currency through OTC.

There are still challenges to achieving this step:

1. If the amount of game tokens earned is too small, players will not make much money when converting to fiat currency, and they may give up halfway during the process of opening wallets and exchange accounts.

2. Withdrawing from virtual currency exchanges has always been a challenge; even in compliant virtual currency exchanges in Singapore, transferring USDT from one's wallet to the exchange account to sell for new coins is not feasible.

3. Players can exchange the game tokens earned in the game for USDT on chain DEX or centralized exchanges, but converting USDT into fiat currency through OTC with U merchants faces many off-market risks. If the bank account of the U merchant is under risk control for suspected money laundering, then the bank account of the game player receiving the fiat payments from these U merchants will also be under risk control.

The funnel for operations to attract new users from the traditional gaming player market into chain games is indeed very narrow and hard to break into.

Even if a certain number of Web3 and Web2 players are brought in, it still depends on whether the economic system design of the chain game itself is balanced and whether the gameplay can retain players.

Therefore, many chain game project parties have noticed this and only compete within the small pool of crypto-native Web3 old users, which is sufficient for those Ponzi projects that do not require a large user base.

This is also an important reason why the chain game track has not been prosperous in recent years. Ten chain game projects have expended a large budget and done a lot of operations to attract new Web2 players, but out of 10,000 new Web2 players brought in, only 500 learned to open wallets and trade virtual assets, thus continuing to play chain games, while the rest were lost.

In short, the chain game track has broken through, but there is still a long way to go, and along the way, there seem to be the bodies of project parties and VCs.

#gamefi

@WalletConnect

#walletconnect

$WCT