From CryptoKitties to Armin van Bitcoin: Crypto Collectibles 101

Why were crypto collectibles destined to become a smash hit? Well, imagine the world without games. No basketball, no Super Mario Bros., no Monopoly. Looks like an incredibly dull place, doesn’t it? The universal truth is that people like to play, and games are part of who we are. So it comes as no surprise that the new form of gaming instantly took off. But let’s start from the very beginning.

What are they?

Collectibles are various objects such as stamps, coins, and antiques which because of their rareness have an intrinsic market worth. Now, what if collectibles went digital? And not just digital, but created on blockchain technology? They would become totally unique, non-fungible, and in buoyant demand. Well, this is exactly what happened in November, 2017.

So what happened?

You might remember the tamagotchi, a digital pet that was a must-have for every child in the late ’90s. Something similar seems to have happened in November, 2017. Described as “collectible, breedable, and oh-so-adorable”, CryptoKitties is the first game where you wholly own your pet. Once bought, they cannot be replicated, destroyed or taken away, but can be sold, properly secured by blockchain technology, and used to produce offspring. To get a kitty one needs MetaMask, a digital wallet, and ether, the cryptocurrency that allows the game to run. However, there’s no fixed fee: you either buy one from another user who sets their own price or get a new “Gen 0” CryptoKitty whose value is determined by the average price of the last 5 CryptoKitties sold plus 50%. The game instantly became a huge hit, and since then the world has been hit by the crypto collectibles craze and never looked back.

And then?

And then, predictably, the idea caught on and more blockchain-built games started to appear. Now there are a whole bunch of them, from crypto celebrities to countries to masterpieces, you name it. Today on websites such as OpenSea you can easily buy and sell a crypto Queen of England, Andorra, and Mona Lisa. And platforms such as Trust Wallet and MyEtherWallet offer to safely store your collectibles. As time passes, these games are becoming more sophisticated and complex. For example, people who enjoy Magic: The Gathering will probably appreciate its Ethereum-built distant relative Mythereum, a multiplayer game where users collect cards, go into battles, and should not forget to mind the dragons. If you prefer RPGs and space odysseys to card games, you might want to check out Crypto Saga and Crypto Space Commander.

What’s next?

There has been a lot of talk regarding this question. While some tend to think that like Beanie Babies crypto collectibles will eventually go out of vogue, others believe that they will not. It seems that they do have a future as they are beautifully designed, colorful, and funny. Most importantly, however, crypto collectibles appeal to our fundamental need: the need to play. Therefore, the gaming industry has been embracing them with enthusiasm and will likely continue to do so.