Japanese game developer CyberStep is taking a game-changing leap into the blockchain space. Still, this move gives a glimpse into how companies like Sony and Microsoft may seek to manage digital assets and earn revenue down the line. This bold step raises questions about the future of gaming, the benefits of crypto reserves for companies, and the inherent risks involved. DreamingCrypto delves deep into CyberStep’s game plan and what it could mean for the market.

CyberStep has committed to fund ¥200 million, about $1.25 million of the total investment, from its own resources. Their stated intent is to create a strategic reserve of BTC and ETH by the end of their fiscal year (May 2026). The company’s intention is to increase this reserve over time. Market conditions could make them go as high as ¥1 billion, nearly $6.25 million. This decision goes hand in hand with CyberStep’s development of Web3 related projects. In their blockchain game "Eggle" players earn “Eggle Energy Token (ENG)” by taking care of their NFT characters. They can then exchange these tokens into popular cryptocurrencies. CyberStep trusts in Bitcoin and Ethereum to be long-term established and valued cryptographic currencies. They envision these cryptocurrencies as key components of a growing ecology of self-sustaining token economies.

This strategy doesn’t stop at simply holding crypto either, but instead involves deeply embedding it within the fabric of their gaming ecosystem. CyberStep is minting tokens with “Eggle” and exchanging them directly for Bitcoin and Ethereum. This makes for a closed-loop system where player engagement directly increases the company’s crypto coffers. This strategy would provide CyberStep with greater fiscal latitude. Plus, it further unlocks potential new revenue streams and paves the way for other game developers making the Web3 jump.

The Allure of Crypto Reserves for Gaming Companies

Why would a gaming company keep crypto reserves in the first place? The promise of these touches are both deep and wide, with the potential to transform the entire sector.

Potential Benefits

  • New Revenue Streams: The success of play-to-earn games like Axie Infinity demonstrates the potential for generating revenue by selling in-game items for cryptocurrency.
  • Improved Interoperability: Crypto reserves can facilitate the transfer of in-game items between different games, enhancing user flexibility and loyalty. The standardization of tokens, like ERC-721 and ERC-1155 on Ethereum, has made it possible to transfer items between games, increasing their utility. This interoperability could lead to new gaming experiences, allowing players to carry their favorite items across different games.
  • Reduced Transaction Fees: Using crypto for payments can reduce transaction fees and potentially eliminate the cost of float and the need to wait for cash settlement.
  • Increased Accessibility: Blockchain-based games can leverage crypto reserves to provide a seamless payment experience, potentially increasing accessibility and user engagement.
  • Competitive Advantage: Merchants, including gaming companies, are embracing digital currency payments to gain a competitive advantage, with many seeing it as a way to reach new customers.
  • Verifiable in-game assets: Blockchain technology allows for the verification of in-game assets, such as the release of 1,000 sets of armor, using a blockchain explorer.

Navigating the Risks: A Word of Caution

It is important to recognize the substantial dangers that accompany investing in cryptocurrency.

Potential Risks

  • High Volatility: The crypto market is known for its volatility, and sudden price drops could significantly impact the value of CyberStep's reserves.
  • Potential for Rug Pulls or Scams: The "Anirand" incident in the Algorand ecosystem serves as a stark reminder of the potential for scams and rug pulls in the crypto space.
  • Security Risks: Crypto wallets are vulnerable to hacking and theft, requiring robust security measures to protect assets. Double-checking the address before transferring tokens is crucial to avoid losses.
  • Liability for Losses: Users may face indirect or consequential loss or damage arising from or in connection with the use of cryptocurrency in gaming.

The Future of Gaming: Will Others Follow?

At worst, CyberStep’s bold move will at least inspire a new wave of creativity from game developers. This transition could result in an increase in blockchain-based games as well as the inclusion of cryptocurrency within existing gaming ecosystems. Greater utility of in-game items holds incredible potential to enrich the gaming experience. We think this industry-wide shift will open up some truly thrilling new possibilities for developers and players of all stripes.

Look for high-energy, thrilling new gameplay, from action-packed video games to adventures on the cyber-gambling scene! Our Web3 prophecy foretells unchained metaverses. In order to prosper in this new, decentralized age, all of us need to better understand the risks and benefits that come with crypto integration.