Why would someone pay $140,000 for a cat that is not even real?
The internet wondered as hundreds of users jumped onboard to play the popular game Cryptokitties. You will still not understand how someone can love a virtual cat so much until you get your own Cryptokitty.
Cryptokitties is one of the world’s first games based on blockchain technology. The technology is used to collect digital cats. Who doesn’t like fluffy felines? There isn’t much difference when you pick and choose a kitty with dreamy eyes and colorful fur. Users can buy and trade these ‘cats’ in exchange for real-world dollars- something that makes you more attached to your cryptokitties.
CryptoKitties are a form of blockchain collectibles, as each of them has a unique “genetic” code and traits – some rarer, more desirable or more expensive than others. Source
The distinguishing factor about cryptokitties is the novelty that comes with owning a cat. These digital cats are one of the most expensive novelties you can own and flaunt around. It is human nature to want something that is the talk of the town. The sole expression of novelty has powered marketing campaigns for years. The case is same with cryptokitties.
Once bought, the owner will have sole ownership of that kitty. If you like it, you will have to pay thousands of dollars to seize ownership. The love for this game is still intact, as it was reported that one kitty was sold for $155,000!
The owners like it when you say that cryptokitties pay homage to one of the major 90s fads- the Beanie Babies. People used to pay extraordinary amounts of cash in exchange for cute stuffed animals. However, unlike the Beanie Babies, cryptokitties can breed and produce offspring with some unique characteristics. This is also like the digital spinoff of the Beanie Babies craze.
Before top-tier investors like Andreessen Horowitz gave the company 12 million dollars, countless people had already bought and traded cryptokitties. The main reason behind this investment was one core function of the game: to be able to safely keep collectibles online.
Just a game:
The game did nor promise profits in any of the promotions when it was launched in 2017. The startups relying on ICOs in our era are hungry for more cryptocurrency, but this platform kept it very single. It always was a game where you can trade digital kitties in exchange for real-world money.
As a player, you buy a beautiful cat, and if you want to breed, you find a suitable match for the cat. When the offspring arrives, you can sell it to a user who pays a good price. There is not much to question about cryptokitties, a fact that made hundreds of user line up for kitty acquisition. It was just an interesting game, as promised.
Many people are debating that this novelty is not going to last very long. Statistics from Blockchain analytics sites like Diar show that the number of cryptokitties transactions has decreased in the last 3 months.
In June, the number of transactions fell a whopping 98.4 percent. That does not affect the popularity of the game, because it is still a favorite ethereum-related game for users. However, the public interest in these digital cats is decreasing due to one major challenge.
Even the cofounders agreed that the skyrocketing transaction costs of ethereum would affect the demand for cryptokitties. The owners had the major challenge of scaling when the cryptokitties were first launched.
The average price of a cryptokitty has dropped significantly since the launch. Diar reports that the price per kitty used to be $41, and is now something around $5. It is a shocking statistic that will pose greater challenges for the future of cryptokitties. The decrease in a number of transactions is always bad news in the marketplace.
Now, they are trying to expand the avenues of the game to turn it into a deliverable platform outside buy and sell of kitties.
The co-founders have a soon to be launched program set for developers who want to create similar experiences by learning from cryptokitties. This gives users many reasons to return to cryptokitties.
The groundbreaking thing about cryptokitties is that they familiarized people with a new way of using Blockchain technology. The true value of digital assets stored on the internet was cemented in the mind of digital experts.
The way we perceive digital art as changed through cyrptokitties. There are so many routes to take now. Moreover, when there is personalization, the game becomes even more interesting. There are billions of options for a potential cryptokitty, means there is a cryptokitty meant for your choice. Selective breeding in this game can also get you your dream kitty! You can even dress up your cryptokitty!
When you buy a cryptokitty, it is not just a game anymore. It is a valuable collectible. Even if the game shuts down, your kitty will be alive on the ethereum network as a hash code. You can even gift it to your grandchildren in the fast future. People are ready and up to the task for charitable kitty purchases and donations. It gives new meaning to cyberart and the meaning of art itself.
Moreover, cryptokitties have given new meaning to third-party apps. Third-party of fanmade art used to be frowned upon by many. With Blockchain technology, this goes out the window. In fact, third-party apps and developer community contributions are hugely celebrated. Now there are new ways of dealing with cryptokitties- as a game, as a developer or a thought leader!
Creating educated users:
The one thing that sets cryptokitties apart is the smart and educated user base. They know how to operate transactions on one of the most advanced technological creations of this era. The community is much more educated about cryptokitties and how the platform works.
Ethereum Gas Fees had also decreased 50x compared to when the platform was launched. The users may not be making frequent transactions, but they know how to operate strategically. It opens new possibilities for the platform by shaping an entire user experience that is backed by experience, rather than frequency of usage.
Further in 2018:
As we move towards the end of 2018, the cryptokitties concept may be slipping in the past. New trends have emerged from the popularity of this game, and new experiences will be created from the platform as promised by the co-founders.
2018 has been a phenomenal year for Blockchain technology, and Ethereum-based apps have seen a major uplift. We are still eager to find out the next step. Will it be a mainstream kitty adoption or something entirely new? Stay tuned to find out more.