What are the risks of NFT gaming?

NFT gaming carries real risks that are worth understanding before you invest time or money. The good news is that most of the risks are avoidable if you know what to look for. The bad news is that a significant number of players in the 2021 boom learned about them the hard way.

The biggest risk in NFT gaming: game shutdown

The most common way players lose value in NFT games is not hacking or market crashes , it is games shutting down. Dozens of blockchain games have closed since 2021. Ember Sword shut down in May 2025. The Walking Dead Empires closed in July 2025. Midnight Society, the studio behind Deadrop, shut down entirely. When a game closes, the items may technically still exist on the blockchain but they become worthless because there is no game to use them in and no player base to buy them.

How to reduce this risk: stick to games with proven track records, active development, and genuine player bases. DappRadar tracks active wallets per game and is more reliable than official player count claims. A game that has survived multiple market downturns is meaningfully lower risk than a newly launched project with ambitious promises.

Financial risks in NFT gaming

NFT item values are volatile and can drop to near zero quickly. Axie Infinity's SLP token lost over 99% of its value from its 2021 peak. Players who bought Axies at peak prices to participate in the earning economy lost most of their investment when the model collapsed. The pattern is consistent: games that require upfront NFT purchases with the promise of earning those costs back are replicating a model that has repeatedly failed.

The practical rule: never invest more in NFT game assets than you are willing to lose entirely. Start with free-to-play games that don't require upfront purchases. If you do buy assets, buy them because you want to use them in the game, not because you expect them to appreciate.

Security risks: wallets and scams

Wallet security is a genuine concern. Phishing attacks targeting NFT game players are common , fake websites, fake Discord moderators, and fake support emails designed to trick you into revealing your wallet's seed phrase. Anyone who asks for your seed phrase is attempting to steal your wallet. No legitimate game, marketplace, or support team will ever need it.

Smart contract exploits are also a real threat. Several NFT game bridges and marketplaces have been exploited for millions of dollars. Using established games on audited blockchains like Immutable and Ronin reduces but does not eliminate this risk. Never connect your main wallet holding significant assets to a new or unaudited game.

How to approach NFT gaming risk sensibly

The players who navigate NFT gaming well treat it like any other hobby with optional financial components. They play games they genuinely enjoy, keep their financial exposure proportional to what they can afford to lose, use hardware wallets or separate wallets for gaming, and verify every URL and contract before connecting. The game library on this site covers current status on every title so you can see which games are actively maintained before committing your time.