Online gaming companies in India are looking to launch their own non-fungible tokens (NFTs), according to people familiar with the matter.
NFTs can replace in-app purchases
Reports have recently surfaced that Indian gaming platforms like Dream11, Mobile Premier League (MPL) and Nextwave Multimedia, a subsidiary of Nazara Technologies, are make their foray into NFT space, following the success of online games which sold NFTs for a substantial sum of money.
NFTs are non-interchangeable units of data stored on a digital ledger like blockchain for public proof of ownership. While they cannot be replaced with another unit, these tokens can be paired with easily reproducible items like photos, audio, video, and even digital art. With the real money gaming industry seeing steady growth in user numbers as casual games gain popularity, experts say digital tokens appear to be the next logical step for the industry and have the potential to even replace in-app purchases.
The games market in India, for example, has seen a dramatic increase in adoption, especially during the pandemic, as more consumers turn digital to play their favorite. roulette game in the comfort of their own home.
PR Rajendran, Founder and CEO of Nextwave Multimedia, which manages the World Cricket Championship franchise, said: âNFTs are exciting because they meet a number of demands. For example, people play WCC for years, some also find it as part of their childhood. During the period these users have accumulated a lot of assets and now for use they share their username and password with other users. NFTs can streamline this with other use cases.
Should regulators also look at digital tokens?
The popularity of NFTs and the reported foray of Indian game companies into the digital token space add another layer to the already hot debate over how the online gaming industry should be regulated in the country. Regulators and real-money online gaming operators in the country are already at odds over what the regulatory landscape should look like, which even the best online casino in India is not spared by the obsolete laws of India.
Prices for digital tokens tend to fluctuate, rise and fall based on perceived market value, NFTs are seen in some cases as a form of gambling. And with many Indian states still considering a regulation of real money gambling, is this another area of ââregulatory oversight that needs to be regulated?
If so, that would only further delay India’s already slow road to an updated regulatory framework. Moving forward, Indian government officials must move away from archaic laws in favor of a uniform regulatory framework that allows the market to keep pace with rapidly changing technologies and gives authorities greater flexibility for potential upgrades. .
Analysts at ENV Media explained it better in their report in regulated markets, saying: âIndia is a particularly emblematic case of equally imminent regulatory needs. The betting ban is widely seen as ineffective. In such contexts, some authoritative recommendations cannot be ignored. Emerging markets (India in particular but not only) will benefit from the creation of their own central regulatory framework, a gambling oversight body and consumer data protection regulation.