- The Sandbox (SAND), along with other projects, were hit with inaccurate active-player-count data reporting from news outlets which sparked controversy in the crypto space.
- Games and Metaverse related projects cannot be judged by their active player base, as there are numerous other factors that play into the big picture, according to Yat Siu.
Yat Siu was interviewed by Bloomberg, where he said that user count is not the best measure for player engagement.
Siu noted how other metrics, including the number of jobs created on the platform, played a much more significant role and discussed how the revenue being generated from the game, when coupled with all of the aforementioned data points, paints a more accurate picture.
Animoca Co-founder Yat Sui says Low User Counts Are Not the Right Metric for Player Engagement
DailyCoin previously covered how, on October 7, 2022, a CoinDesk article titled ‘It’s Lonely in the Metaverse’ became controversial due to its non-accurate daily user data.
That report sparked an interview featuring Yat Sui at the TechCrunch Disrupt conference in San Francisco, conducted by Bloomberg.
Throughout this interview, Siu had numerous things to say surrounding the overall data and how virtual worlds can accurately be analyzed.
From the interview, it is clear that raw player count isn’t the right metric through which player engagement can be properly ascertained.
The virtual world features LAND NFTs, ones that can generate revenue for players, and can also be sold or traded, becoming another metric that needs to be considered.
The incentive of passively earning crypto by holding NFTs results in many players not wanting to get rid of them unless they have to, resulting in lower sales.
If a game’s structure is built around the utility of its native cryptocurrency and NFTs, many Sandbox players tend to keep them, as this is how the game is meant to be experienced and played.
Yat Siu is the Co-Founder of Animoca Brands Corp. as well as the majority owner of The Sandbox (SAND), meaning that it is in his best interest for the game to perform well. However, this also means that he has access to raw data news outlets might not have, granting a higher level of credibility to his opinion.
'Every landowner in Sandbox has a wallet that's between half a million and $2 million.’ Siu said.
On the Flipside
- The Sandbox (SAND) posted official data surrounding the number of active users, proving that previously published data was based on misinformation.
Why You Should Care
While daily active player counts can indicate a platform’s success, in the case of platforms and games with Play-to-Earn (P2E) mechanics or NFTs that have a high value directly or can generate a lot of value, we can gauge their success through alternative data sources.
Yat Siu’s perspective of the game is correct not just for SAND exclusively, but for any project. This event proves that not all data can accurately represent a project’s health.
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