How Cryptokitties retained their value better than Cryptocurrencies

  • BLOCKCHAIN
  • 3 MIN READ
Ajish Prakash VP - Strategic Partnerships
Cryptokitties

One might say that we live in a very strange world. The digital advance has brought advances in our society that are sometimes hard to grasp. Especially if you are not one who is interested and keeps himself constantly updated with the digital world. For some people Blockchain technology and the boom of cryptocurrencies remains a mystery to this day. Along with it came Cryptokitties, something that would be hard to explain to anyone who is not in this niche market. The main point of all of the above-mentioned technologies and its application was to make the world less centralized. To make the exchange of information democratic and at the same time as secure as possible. By ridding itself of the hierarchical system, where the top man decides and controls how information is being spread and controlled, the Blockchain technology and cryptocurrencies have revolutionized the process. The implication of this revolution is still uncertain and the whole market remains is a bit ambiguous situation. So in order to better understand those implication let’s take a look on this topic from a different perspective. Decentralized application (Also known as DAPP), is something that has been slowly making its way to mainstream popularity, with Cryptokitties being the first one whole entire purpose to provide leisure and recreation.

What are Cryptokitties

Like the famous Tamagotchi, Cryptokitties is a Blockchain based game that gives its owner an opportunity to raise a virtual animal (As the name of the app implies, a kitten). This application proved an instant success and the first DAPP that would break into mainstream success. As a result, the sales figures were outstanding and people spend more than 12 million dollars on their virtual pets. Things went even further than that and some people managed to treat this as an investment and later sold their kittens for a profit. At the top of its game, Cryptokitties managed to sell some of their kitties at a price as high as a hundred thousand dollars. However, the app peaked in 2017 and its user base had not been the same after this. It is reasonable and not unexpected that something that goes hot so fast, will not be able to sustain it for a long period of time, for example, you can take a look at the worldwide craze that followed the release of Pokemon Go and how it has dissipated soon after. However, in both cases, even after the peak of the product has come and gone, it does not mean that it has completely lost its value.

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The current state of Cryptokitties

In the recent interview with the parent company of Cryptokitties, the representative of Dapper Labs has revealed that even though their numbers are not the same, they have managed to retain it better then cryptocurrencies. So much so that the company grew to include more than 100 people. More importantly, the legacy of the Cryptokities will be the fact that it has introduced thousands of people to the concept of Blockchain and informed them about the unique nature and importance of this emerging technology.

CryptoKitties is not just notable for initiating the trend of bringing cryptocurrency into the mainstream but it has also introduced a new type of Ethereum token called the ERC721 token. Till Cryptokitties came into being, tokens were used to fund ICOs in return for a product. Since the introduction of this game of cats there is a mathematical uniqueness and originality attached to the digital assets, paving the way for this new standard coin in blockchain.

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Published: Mar 25,2019 12:30:00 PM IST
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