Why Is CryptoKitties (Not) Gambling?

Abstract

CryptoKitties (Axiom Zen 2017) is a pioneering blockchain-based game that disrupts the 'classic game model ' (Juul 2003; in a way that turns it into a gambling web application. As previous research has shown, its mechanics are almost exclusively based on chance (Scholten et al 2019), and the rest is mostly speculation with game assets (Lee, Yoo and Jang 2019). This raises the question whether this game requires any skill, such as strategic planning. In my case study, I revisit the game system and perform a practice of playing it to differentiate between unpredictable (or "aleatory", as in Johnson 2018) and decision-making points in the game. I argue that mapping the journey of a player should complement analysis of the game system to assess the balance between skill and chance in a better-informed manner.

A critical professional ethical analysis of Non-Fungible Tokens (NFTs)

“…Games such as CryptoKitties 8 and Axie Infinity 9 (and their many derivatives) allow players to "play to earn" by collecting, buying, selling, and minting new NFT characters within the game. This has been a controversial move within the video game industry, with issues around the balance of the economy between play to earn players and pay to play players (Friedman, 2022), potential gambling relation (Scholten et al, 2019;Serada, 2020), accessibility of the games to those without much initial capital (and exploitation of those who come in under "sponsorship" methods) (Elafros, 2021;Friedman, 2022), and, overall, what the nature of games should beshould they ultimately be purely entertainment or offer some people the opportunity to have a game be a (frequently stressful) job? On the other hand, proponents would argue that play-to-earn games can provide low income workers with alternative revenue streams and ways for dedicated gamers to be extrinsically rewarded for their time spent in-game, and bring "digital identity, assets, and ownership into players' hands" (Brambilla Hall & Baier-Lentz, 2021).…”

Understanding the mechanics and consumer risks associated with play-to-earn (P2E) gaming

“…Players may play games for 30 h per week, earn many in-game assets or solve complex games, but obtain little tangible compensation. For this reason, there has been growing interest in the potential merits of so-called ‘Play-to-Earn’ or P2E games, which could reward players for their gaming ( Jiang & Liu, 2021 ; Serada, 2020 ; Serada, Sihvonen, & Harviainen, 2021 ). The idea here is that players might earn tokens or rewards for their game-play as well as assets which they definitively own and which can be converted into fiat currency.…”

CryptoKitties and the New Ludic Economy: How Blockchain Introduces Value, Ownership, and Scarcity in Digital Gaming

“…For instance, it is common knowledge among players that the value of kitties depends on their appearances (cakepie99999, 2017; Pranked, 2018). As participatory netnographic research suggests (Середа, 2019), the value of a cryptokitty should be estimated through taking all these different elements into consideration: technology , including its “material” aspects of mining (the “rigs,” fees, and lags); the platform , including the specifics of the blockchain-powered cryptocurrency; the complicated semiotic system of game rules ; and finally, player behavior on the market, in-game communities, and in the game. Like in any other game, this behavior can be fair and social, or unfair and disruptive, or anything in between.…”

“…Practically speaking, we use open blockchain analytics such as DappRadar and Etherscan, as well as player-created analytics, supported by observations from a documented one-year-long participation in the said game (Середа, 2019) in our study. Combining theoretical cryptocurrency and Bitcoin studies, open data analysis, and virtual ethnography enables a grounded discussion on the opportunities and business potential of blockchain-based game design.…”