The Web3 sector in India is witnessing a remarkable surge in adoption, encompassing more than just cryptocurrencies.
Blockchain gaming and non-fungible tokens (NFTs) are captivating the attention of tech-savvy Indians, offering a range of enticing opportunities, from digital properties in the metaverse to copyright and royalty rights over purchased NFTs. Parth Chadha, CEO of STAN, an Indian Web3 firm, believes that the flourishing NFT sector will empower creators to safeguard their intellectual properties while generating substantial revenue from this cutting-edge technological stream.
Chadha stated, “Indian players are acquiring in-game items and characters as NFTs, which hold both utility and value within the gaming universe. These NFTs provide liquidity options to their holders, and their potential for development, monetization, and resale makes them practical and potentially profitable investments.” Chadha shared this insight with Gadgets 360, emphasizing the benefits that NFTs bring to the Indian market.
According to a report by community platform NFT Club, India is home to the third-largest number of NFT companies globally, commanding a five percent share of the global NFT market. Indians are utilizing NFT investments for a wide array of purposes, reflecting the versatility and growing popularity of this innovative technology within the country.
Bollywood Actor Vishal Malhotra Breaks Ground with India’s First NFT-Funded Film
In a groundbreaking move, Bollywood actor Vishal Malhotra took advantage of the burgeoning NFT culture to finance his directorial debut film, “Ilm.” Embracing the growing trend of NFTs, Malhotra, aged 42, embarked on collaborations with Indian NFT artists starting in June 2021. Through the sale of these NFTs, the actor successfully raised the necessary funds to bring his film to life, marking a significant milestone as India’s first NFT-funded movie.
STAN CEO Highlights How NFTs Empower Indian Artists and Creators
According to the CEO of STAN, NFTs are proving to be a valuable tool for homegrown artists and creators in India. Through the tokenization and marketing of their copyrighted material, Indian musicians, authors, and other creative professionals are leveraging NFTs to secure a stake in future royalties and potentially benefit from the resale of their own creations. Parth Chadha emphasized the transformative role of NFTs in empowering artists and enabling them to unlock new avenues for recognition and financial success.
Zostel’s Zo House: A Physical Hub for Bengaluru’s Thriving NFT Community
In a move that aimed to cultivate a vibrant environment for Bengaluru’s NFT community to connect, collaborate, and unleash their creative potential, backpacker hostel chain Zostel unveiled the Zo House earlier this year.
This unique initiative provided a dedicated physical space where members of the Web3 community could gather, exchange ideas, and foster collaboration. Since its inception, the Zo House has received overwhelmingly positive feedback from the Web3 community, highlighting its success in catering to the needs and aspirations of Bengaluru’s flourishing NFT ecosystem.
India’s Gaming Sector Poised for Tremendous Growth, NFT Regulation Remains a Key Challenge
With an estimated 507 million gamers as of November 2022, India’s gaming sector has witnessed remarkable expansion. According to a study by Interactive Media Venture Capital Fund Lumikai, the valuation of the Indian gaming sector was estimated at $2.6 billion (roughly Rs. 21,502 crore). Furthermore, projections indicate that by 2027, the sector’s value will skyrocket to $8.6 billion (roughly Rs. 71,106 crore).
However, the widespread adoption of NFTs and blockchain gaming in India is hindered by regulatory uncertainties. While the country is actively working on formulating laws to govern the crypto sector at an international level, Indian authorities have yet to provide clarity on the categorization of NFTs.
An official clarification regarding whether NFTs should be considered digital assets or not would greatly assist investors in making informed decisions. Parth Chadha, CEO of STAN, emphasized the importance of India embracing this technology and establishing a clear regulatory framework for NFTs. He believes that such a framework would foster innovation and protect the interests of all stakeholders.
As the NFT market expands, Indians are likely to discover even more innovative ways to benefit from the practicality and value of NFTs. Chadha highlighted how NFTs are already being utilized to represent event admissions or unique experiences, providing secure, authentic, and easily transferable entry to special community-hosted events.
STAN, initially a Bengaluru-based esports fan engagement platform, has evolved into a community marketplace since February 2023. The marketplace aims to become a one-stop destination for blockchain gaming enthusiasts to trade digital collectibles.
The blockchain gaming sector is expected to experience explosive growth in the coming years, as new players enter the arena, intensifying competition with established industry leaders.
According to a research report by DappRadar, Asian nations including India, China, Japan, and South Korea boast a collective population of over 1.7 billion video game players. The concentration of gamers in Asia has attracted the attention of the Web3 gaming community, making it a priority market. Asia contributes over 55 percent of the global gaming community and generates more than $72 billion (roughly Rs. 5,88,229 crore) in annual gaming revenue.
A recent report by Chainalysis highlighted that in the second quarter of 2022, 58 percent of web traffic from Asian nations to crypto services was NFT-related. Additionally, 21 percent of the traffic was associated with play-to-earn blockchain games, indicating the growing popularity of these gaming innovations.