The answer to the wrong perception of loot boxes may be the CoinsLoot platform, which is aimed at the public interested not only in the subject of gaming but also in cryptocurrencies. What is inside the CoinsLoot’s boxes? The CoinsLoot platform is in no way related to gaming or gambling at all. CoinsLoot is the first world crypto loot boxes platform connected with the regular exchange and it is a totally decentralized system. How does it work? In contrast to using loot boxes in video games, in CoinsLoot the user is the one who decide about the amount of money he wants to invest in, also the platform has their own native LOOT token, which is not the game currency, but it was made to provide full transparency and smoothless experience.
CoinsLoot, in contrast to video games, is more secure. That security of transactions and privacy ensures the Blockchain technology on which the CoinsLoot is based on.
What is inside the loot boxes in CoinsLoot? As it was said, CoinsLoot is not a video game or gambling platform, but a cryptocurrency application based on Blockchain technology. In loot boxes, you can find the best cryptocurrencies available on the market, and also real-world items. Boxes are full of long prepared, valuable items. Thanks to no loss guarantee system, it is impossible to find in the box items or currencies worth less than you invested in, so it’s completely different that in the video games system.
During our project, before the formal start, we completely changed the principle of operation of the LOOT token. So far, we planned the token to be created for players, but at an early stage we noticed difficulties for users that we eliminated. By creating an application available to every user, and the option to open a box will be available to anyone who has any trading currencies on the Ethereum network, such as ETH or USDT.
The LOOT token is a utility token that you will be able to staking. Until now, the LOOT token was directed to platform users, now, due to the possibility of earning on it, it has become more attractive also for investors. To earn money, you must have a LOOT token, more people with tokens = more earners = less tokens available for sale = the token gains value.
Now you have a chance to buy it at issue prices before the entire platform becomes so popular that it will be difficult to buy them. You have a chance to buy more of them at a lower price and thus have a greater share of staking. In the future, tokens can be traded on many known cryptocurrency exchange platforms, which will give the tokens global speculative value. All this causes the price to go up in value in the future.
Loot box (also called loot crate) is a disposable virtual item in some video games (like Fortnite, Overwatch or FIFA), which can be use to receive a randomized selection of further virtual items or loot by making microtransactions. Players can get more or less valuable items, like customization options for players avatar, game-changing equipment, weapons, and armor. Loot boxes are a form of revenue . How does the box purchase process work? Players can buy the boxes directly or receiving the boxes during play and later buying keys with which they can exchange. It is worth adding that the loot box is only an addition, players are not obliged to purchases. Generally, gamers don’t know what items are inside the boxes, so it is more like a lottery. Unfortunately, gaming companies began to exceed certain limits and they started putting in their loot boxes new game items which make the gameplay much easier. On the other hand, gamers without content from loot boxes don’t have any chance with players who spend real money on loot boxes.
The issue of illegality is one of the most discussed in discussions about loot boxes. Many countries have introduced regulation regarding the use of loot boxes within recent years. Games that using loot boxes may be considered as a form o gambling, due to their random chance to get real value content. While gambling law is different for every country, it has become a real subject of regulation in a few Asian countries, therefore also in more and more Western countries appears law restrictions.
An interesting case in the discussion appeared in the Netherlands, where in 2018 the government issued an opinion that games which sell loot boxes and allow making microtransactions while video games are illegal. Authorities examined games containing loot boxes and issued that they violate gambling, so they gave the developers eight weeks to correct their loot box system or face fines and potential bans on sales of the games in the Netherlands.
Also in 2018 a similar case has been placed in Belgium, where the Belgian Gaming Commission completed its study of loot-box systems in four games, FIFA 18, Overwatch, Counter-Strike: Global Offensive and Star Wars Battlefront II, and determined that the loot box systems in those games were considered of chance and subject to Belgium’s gambling laws. For example, the Commission stated that for loot boxes in Overwatch, the action of opening a loot box is a game of chance to receive items of some perceived value to players, and there is no means to directly purchase in-game currency to obtain a specific item, while games like FIFA 18 merge reality and fantasy by using real-life athletes to promote the loot box system. The Commission in Belgium also called for the ban to be extended throughout the European Union, explained that “Mixing gambling and gaming, especially at a young age, is dangerous for the mental health of children”
How did other member states react? In France, following the controversy on loot boxes and microtransactions on the release of Star Wars Battlefront II, the government made a report, that noted that items from loot boxes do not normally have monetary value, and even when they are traded through skin gambling, the publisher of such games do not participate in that arena, thus distancing loot boxes from other forms of gambling.
After the “loot box scandal” in Belgium most member states established similar committees whose rulings either completely banned loot boxes or made it clear that the system did not violate their gambling law.
Loot boxes have become the subject of much discussion and are still controversial in both the video game industry and also among the people not related to gaming. Surely everyone who has played the video game at least once met with loot boxes and was wondering what items are inside the loot box. Of course, not every game have loot boxes, which are often just addition and do not require players spending money. Accusations of encouraging gambling and a bad influence on children, loot boxes have been banned in a few countries. Video game industry retires from loot boxes, but there is a possibility that they can find a new place in the cryptocurrency world. New opportunity for loot boxes created our new partner, CoinsLoot, which made the world’s first crypto loot boxes as DeFi. This is the first combination of loot boxes, cryptocurrency and DeFi, which means that CoinsLoot may be a revolutionary platform in these three fields.
As you know, loot boxes are not obligate any player to use and spending money on them. Actually, it becomes an extra option. The problem is, that many people treat them as rewards. It is worth adding that loot boxes do not contain real-world items, so their value is occupated only in gameplay. Why do people still think that loot boxes are bad? Loot boxes are bringing the element of gambling into the game. Children are often the recipients of gaming content and due to that, loot boxes can encourage underage users to gamble. What is more, conducted research about the effect on the mental health of users showed that players who spend money in loot boxes were more likely than no purchases to spend more time playing video games. They were also much more likely to meet the criteria for mobile gaming disorder and problem gambling, which, in turn, led to higher levels of mental distress.
Loot boxes took this approach and formulated a monetization approach used by free-to-play games in mobile gaming. Loot boxes also incorporate elements of the randomness of acquiring capsule toys. It can be said that the history of loot boxes dates back to 2007 and the Chinese game ZT Online, where loot boxes were a big part of the whole game system. ZT Online introduced loot boxes as a means to assure monetization from a game that they would otherwise not receive revenue from the base sale. This effect contributed to the increased popularity of crates throughout the Asia video game industry.
The first appearance of loot boxes on the premises of Europe and North America was in 2009, and it is related to the success of social-network games that offered the games for free on sites like Facebook but included microtransactions to accelerate one’s progress in the game, providing that publishers could depend on revenue from post-sale transactions rather than the initial sale. The first example of using loot boxes in this area was with Team Fortress II, in September 2010, when Valve added the ability to earn random “crates” to be opened with purchased keys.
Loot boxes significantly contributed to the popularization of one of the most famous games, Counter-Strike: Global Offensive, in which the use of loot boxes completely changed the game system, and loot boxes became one of the most recognizable elements.
Many specialists also emphasize the huge influence of loot boxes on game design. Loot boxes may be easily customized to the game system and special needs. Loot boxes are generally redeemed through a game interface which dresses the process with appealing visual and audio effects.
The very initial setting up of loot boxes was supposed to diversify the game and make that more catchy. Thanks to perfectly developed visual effects, the game becomes improved and more extensive.
As it was said earlier, Belgium was one of the first countries where loot boxes have been banned, but they are also prohibited in China, where the government announced that loot boxes violate the gambling law significantly. It is worth adding that many states have not issued judgments in this case, and games with loot boxes are still one of the most popular forms of entertainment there.
Just like the government, different sentences also arise among the players. A large group of gamers began to protest against the loot box system at the beginning of its existence, refusing to agree that it was real-world money that would determine rewards in games.
On the other side, many gamers think that spending money on game items could not be anything wrong. Real-world money would help the industry and publishers in development, and even more diversify the gameplay.
Loot boxes are considered part of the compulsion loop of game design to keep players invested in a game. Those loops are widely regarded as the biggest cause of gaming addiction. Gambling concerns are incredibly higher in games that offer loot boxes and they are played by the children. Proponents of loot boxes have countered complaints that they are gambling systems by likening them to opening collectible toys or real-world card games which have not been recognized as gambling in the US, for instance.
How much money on loot boxes made the industry? Well, as you know game purchases are not the only way that game industry is making money. Loot boxes are a growing feature in the business models of video game production. They can be obtained through in game purchases ranging from $0.5 to over $100 and contain chance-based virtual items that may offer an advantage in a video game making them gambling products. What is the role of purchase a loot box in the game? A loot box is a mechanic where a player pays either with game currency or real world money for a randomized game item. These items also may be traded amongst players for real money as well. Many people wonder if buying a loot box in game is equal to gambling? As the player is able to complete the game without buying a loot box, it is not gambling, because although he does not know the content of his box, he always receives something that improves his experience and makes the game more exciting. What type of profit do loot boxes give to companies?
First of all, microtransactions. Companies earn the most on this. But why? In their products, e.g. games, companies create new elements that are most often visually great and players buy them with their eyes. It boils down to the fact that most gamers want to have them and to do so they have to buy them. This is where microtransactions come in. Usually, the various available items in games can be drawn from loot boxes. The more loot boxes are worth, the greater the chance of drawing valuable content. Well, but what if a player fails to draw their dream item? It will keep trying and will most likely buy more loot boxes. The games also feature new content every now and then, and this keeps pushing the market forward. Therefore, the microtransaction market is profitable and big companies like Blizzard and Activision are taking advantage of it. Actually, only EA made almost 1 billion $ from microtransactions in one quarter, which is an enormous amount of money, considering that regulations have made them maneuver in some countries.
Therefore, this is further proof that loot box buying in some games is still a fundamental entertainment for a gigantic number of players.
Summing up, loot boxes have many opponents as well as enthusiasts. Loot boxes and microtransactions improve the profitability of games that are playable for free or pay for the first time. Publishers and developers say these types of changes are necessary as games become less profitable due to reduced sales and increased development costs. It’s hard to predict the future of loot boxes, but there is a small chance that they will be used by the video game industry. Maybe the world of cryptocurrency is a new place, when loot boxes will be more popular? Projects such as CoinsLoot use the potential of loot boxes, that have not been fully used in video games. A good chance to change the opinion about loot boxes is to stop connecting them with the world of gambling, what could be possible if new platforms with loot boxes will appear.
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