Just like Axie which is almost same logic with this gamefi project now that almost become viral worldwide I think it will suffer the same fate of massive dump once the hype is over.
This gamefi project gets the passive income they are sharing to players from other players that newly bought the token that adds liquidity for the project.
Once no one bought this coin I believe the game will be dead since token value will dump same as the game rewards.
All cycles are the same, hype then messy, people who are already in the Crypto market about the development of industry and narratives will understand the performance of a category in each field of projects, and this game is one that relies on their hypes to be destroyed.
The reward mechanism is also not far, and the most needs to pay attention to their games is not very interesting at this time, the web2 section is still a lot of fans and more friendly than the games on the web3 now.
I think the idea of gaming and earning is still strong, especially with the younger crowd. If the games themselves are actually fun and not just cash grabs, GameFi could really go far.
There is no project that specifically focuses on the development of the game, they only play schemes to get money from the community but from the games are unable to compete with web2 game developers, this is an obstacle which must have more value to be traded and can survive.