Re:The collapse of cryptokitties, the first big blockchain game
by dragonwriter on Friday September 16, 2022 @10:20AM
(#32866372)
> Ceteris paribus, WotC can capture more value when the collectibles it issues are more valuable
Obviously, but equally obviously we aren't talking about a situation where ceteris paribus even approximately holds.
Re:The collapse of cryptokitties, the first big blockchain game
by ETH_start on Saturday September 17, 2022 @11:04AM
(#32878089)
Yes, I think it was clear I wasn't implying that it was, given I went onto address the other factors right afterwards. The ceteris paribus was just an analytical device to control for one factor - initial sale price - and establish what its effect is on WotC's profitability.
Whether post-issuance value capture is sufficiently increased by controlling the platform to compensate for the lower market value those assets can command can be argued of course, but I intuit it is not.
As it is WotC captures almost no value from secondary market exchanges of its physical collectibles. I don't see why the prospect of creating a valuable secondary market for its digital collectibles, where it is the sole seller in the primary market, wouldn't be a more attractive prospect for it than trying to create a digital walled garden where there would be significant OPEX costs and no assurance of market demand.