The collapse of cryptokitties, the first big blockchain game
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The collapse of cryptokitties, the first big blockchain game
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Re: The collapse of cryptokitties, the first big blockchain game
#2CryptoKitties was a great initial introduction (for me) into the mechanics of setting up a wallet, transferring funds, trading nfts,etc. The wild monetary value swings definitely captured the BeanieBaby mentality they were aiming for as well.
Re: The collapse of cryptokitties, the first big blockchain game
#3One thing I don't see addressed in this article is that as far as I know, it's basically impossible to trust the reported price or volume of NFT transactions, because there's no way to distinguish fake wash trades from real ones.
So it's hard to draw any conclusions about whether the data reflects an actual peak in user activity, or just a peak in scams.
Re: The collapse of cryptokitties, the first big blockchain game
#4I agree with the part where they describe existing on chain games as too simplistic.
The handful I saw indeed sucks.
No skills really needed beside being able to click and pay the initial fee.
Re: The collapse of cryptokitties, the first big blockchain game
#5Calling CryptoKitties a "game" is a bit generous.
Re: The collapse of cryptokitties, the first big blockchain game
#6One thing I don't see addressed in this article is that as far as I know, it's basically impossible to trust the reported price or volume of NFT transactions, because there's no way to distinguish fake wash trades from real ones. So it's hard to draw any conclusions about whether the data reflects an actual peak in user activity, or just a peak in scams.
Or selling NFTs to yourself to launder money.
Re: The collapse of cryptokitties, the first big blockchain game
#7One thing I don't see addressed in this article is that as far as I know, it's basically impossible to trust the reported price or volume of NFT transactions, because there's no way to distinguish fake wash trades from real ones. So it's hard to draw any conclusions about whether the data reflects an actual peak in user activity, or just a peak in scams.
Or selling NFTs to yourself to launder money.
How does that particular thing work? You run the exchange, then have dirty untraceable money traded on the exchange to dirty participant and you take the exchange fees? You'd have to KYC both participants, right?
Re: The collapse of cryptokitties, the first big blockchain game
#8> Today, CryptoKitties is lucky to break 100 sales a day, and the total value is often less than $10,000.
This seems shockingly high to me
Re: The collapse of cryptokitties, the first big blockchain game
#9Earlier quoted context omitted.
Or selling NFTs to yourself to launder money.
How does that particular thing work? You run the exchange, then have dirty untraceable money traded on the exchange to dirty participant and you take the exchange fees? You'd have to KYC both participants, right?
Not everyone, the "participants" in the chain (typically 8-10 addresses) can arbitrarily inflate pricing by only paying fees which are trivially covered by the final trade. Once inflated, that final address can use a "mixer" to exit (for example) and essentially if KYC is performed in the conversion to fiat, it's after the mix and relatively untraceable.
Re: The collapse of cryptokitties, the first big blockchain game
#10Earlier quoted context omitted.
Or selling NFTs to yourself to launder money.
How does that particular thing work? You run the exchange, then have dirty untraceable money traded on the exchange to dirty participant and you take the exchange fees? You'd have to KYC both participants, right?
Buy a “rare” NFT with clean money. Sell it a few months later for some multiple of the original price, the “buyer” is still you but using dirty money.
NB: I work in fintech but have no particular experience on the fraud / KYC / AML side of things. This is just how I imagine it would work at a high level.