BinaryX (BNX) is yet another attempt to cash in on GameFi through the Binance Smart Chain blockchain.
To explain, GameFi is decentralized finance (DeFi) for games and gaming platforms. The hope behind GameFi is to convert the millions of dollars gamers spend into cryptocurrency. In particular, GameFi developers think they can convince Gamers to replace in-game tokens with crypto.
Interest in GameFi because is high because some observers estimate games comprise over half the money they invest in cryptocurrency. Consequently, speculators are paying enormous amounts of attention to GameFi protocols, such as BinaryX (BNX).
Is GameFi the Future of Cryptocurrency?
The GameFi industry could generate 55% of all cryptocurrency transactions worth $3.1 billion, BinaryX claims. Conversely, CoinTelegraph claims GameFi had a $9.2 billion token market cap in September 2022.
DappRadar estimates gaming accounted for over 50% of cryptocurrency usage in August 2022. However, DappRadar estimates the number of unique active wallets in cryptocurrency fell by 11% in August 2022. Thus, GameFi could survive the ongoing Crypto Bear market.
The Global GameFi Market could grow to $74.2 billion by 2031, ReportLinker claims. ReportLinker claims GameFi could grow at a rate of 23.7% a year between 2021 and 2031.
What is BinaryX (BNX)?
BinaryX (BNX) is a crypto game platform they list on Binance and Gate.io. They built BinaryX on Binance’s Binance Smart Chain blockchain. Unlike some of its competitors, BinaryX develops games from scratch.
For example, BinaryX developed CyberDragon. Thye claim CyberDragon is one of the most popular play-to-earn (P2E) blockchain games. CyberDragon gameplay includes mining, player-vs-player (PVP) action, player-vs-environment (PVE) action, and BinaryX’s decentralized autonomous organization (DAO) system. They claim, BinaryX is the first global GameFi DAO.
To explain, a DAO is a blockchain organization that administers and finances protocols and markets. Most DAOs allow users to govern the DAO by purchasing governance tokens.
BinaryX GameFi Plans
BinaryX’s goal is to create a comprehensive layout for GameFi that will compete with popular commercial gaming platforms such as Amazon Web Services, Google Cloud Engine, and Unity Engine. They hope to provide support for GameFi developers.
They hope BinaryX will function as a GameFi comprehensive basic service platform for game developers and the gaming industry. Basic services BinaryX hopes to provide include nonfungible tokens (NFT) asset trading platform, a high-speed sidechain built for GameFi, an initial game offering (IGO) platform to fund new games, and a development platform or incubator for GameFi projects.
To elaborate, a sidechain is a blockchain they build to connect blockchains. For example, to connect Binance Smart Chain and Ethereum. They claim the BinaryX GameFi sidechain will offer lower gas fees and a high number of transactions per second (TPS). This could make games faster and cheaper to operate. They hope a redesigned sidechain data structure will help developers build more complex contracts and game functions on the sidechain.
An IGO is an initial cryptocurrency offering (ICO) for games. Investors buy IGO tokens because they hope to cash in on new games.
The BinaryX (BNX) Ecosystem
Ultimately, BinaryX (BNX) is building a GameFi ecosystem. The base of that platform will be the IGO function.
BNX token holders can participate in IGOs, initial token swaps of new games, NFT airdrops for new games. There will be a LaunchPool to generate liquidity for GameFit assets.
A GameFi Asset Trading Platform allows BNX token holders to buy and trade game-related NFTs and other game related items such as weapons. They plan to support the BEP-20, ERC-20, ERC-721 NFT, BEP-721 NFT, and batch transactions of the BEP-721 NFT protocols through the NFT platform.
BinaryX (BNX) NFTs
To elaborate ERC-721 is a free-and-open standard that lets you build nonfungible tokens on the Ethereum blockchain. The hope is to create a unique class of tokens.
BEP-721 is a BNB Smart Chain token standard for the creation of NFTs, BEP-721 is an ERC-721 extension that is compatible with the Ethereum Virtual Machine (EVM). Theoretically, you can exchange a BEP-721 token with any other token.
They claim BEP-721 allows developers to create multiple identical tokens with one smart contract. Plus, BEP-721 generates unique IDs that can represent collectible NFTs.
The BinaryX Treasury
They will build a BinaryX Treasury dedicated to BNX tokens. All BNX holders will share all assets in the BinaryX Treasury. The Treasury will receive initial investments, game consumption scenarios income, sidechain income, IGO platform income, and profits from external strategic investments.
They will use the funds in the Treasury for strategic investments in third party GameFi projects, and token and GameFi assets. They automatically reinvest token and GameFi assets strategic investments generate in the BinaryX treasury.
The BinaryX DAO will govern the BinaryX Treasury. There will be two sub tokens they call Gold and Crystal. Users will use the Gold token in games. Players can also use Crystal for in-game purchases.
BinaryX (BNX) offers two games: the sword and sorcery adventure CyberDragon and CyberChess.
All characters and items in CyberDragon are NFTs. Hence, users have to buy NFTs to play CyberDragon. Gamers can buy more NFTs by mining in CyberDragon. Thus, CyberDragon is educating gamers about decentralized finance and showing them how to mine cryptocurrency. It is also tricking ordinary people into mining cryptocurrency.
CyberChess is a P2P and PVP strategy game in which players battle foes from around the world. CyberChess makes money because people have to pay-to-play. Users can buy up to eight heroes for CyberChess combat.
A market allows users to buy NFTs and tokens for game play. Liquidity mining allows speculators to profit from the games by providing liquidity for tokens and NFTs.
I think BinaryX could make money because it offers games human beings could play.
What Value can BinaryX Generate?
Mr. Market has an interest in BinaryX (BNX). For example, BNX was CoinMarketCap’s eighth most-trending cryptocurrency on 4 December 2022.
However, BinaryX was CoinMarketCap’s 147th ranked cryptocurrency on 8 December 2022. CoinMarketCap gave BinaryX a $53.37 Coin Price, a $148.617 million Market Capitalization, a $1.121 billion Fully Diluted Market Cap, and a 24-Hour Market Volume of $17.062 million on 8 December 2022.
There was also a Centralized Exchange (CEX) Volume of $15.117 million and an $2.084 million Decentralized Exchange (DEX) Volume on 8 December 2022. They base those numbers on a Circulating Supply of 2.784 million BNX, a Maximum Supply of 21 million BNX, and a Total Supply of 6.187 million BNX.
Conversely, CoinGecko gave BinaryX a $53.37 Coin Price, a $140.715 million Market Cap, a $13.431 million 24-Hour Trading Volume, and a $1.12 billion Fully Diluted Valuation on 8 December 2022. They based those numbers on a 2.638 million BNX Circulating Supply, a Total Supply of 5.995 million BNX, and a Maximum Supply of 21 million BNX.
Why Speculators need GameFi
Thus, it appears BinaryX (BNX) is generating some true value. I think BinaryX is one cryptocurrency that could survive the crypto bear market because the GameFi market could be immune to market forces and the hysteria events like the FTX (FTT) collapse generate. To explain, gamers don’t care about price and ignore financial news.
Hence, GameFi could make money when the financial markets collapse. Thus, I recommend all speculators examine GameFi protocols such as BinaryX because they could make money in the darkest crypto winter.