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Minecraft bars blockchain and NFTs on fraud fears

By Carine Lee

04:30, 26 July 2022

Mobile game Minecraft Pocket Edition on the smartphone screen
Mega popular game says its focus is on player safety and an inclusive experience – Photo: Shutterstock

Mojang Studios made waves when it said non-fungible tokens (NFTs) and blockchain have no place in Minecraft for now.

The Microsoft-owned studio recently said that “integrations of NFTs with Minecraft are generally not something we will support or allow”.

The firm said it  has “no plans of implementing blockchain technology into Minecraft right now.”

Typically NFTs are minted off the Ethereum blockchain with leading coins including SAND, WAX and DigiByte.

ETH to US dollar

In a statement the studio also said that they are updating the Minecraft guidelines.

“To ensure that Minecraft players have a safe and inclusive experience, blockchain technologies are not permitted to be integrated inside our Minecraft client and server applications nor may they be utilized to create NFTs associated with any in-game content, including worlds, skins, persona items, or other mods.”

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What is Minecraft?

Minecraft is a video game in which 141 million players create and break apart various kinds of blocks in three-dimensional worlds, according to 2021 data. There are two main modes in the game: Survival and Creative.

Players must find their own building supplies and food, as well as interact with blocklike mobs or moving creatures such as creepers, zombies which are dangerous ones in the Survival mode.

SAND to US dollar

In Creative mode, players are given supplies and do not have to eat to survive and can break all kinds of blocks immediately.

US100

19,049.70 Price
-0.210% 1D Chg, %
Long position overnight fee -0.0263%
Short position overnight fee 0.0041%
Overnight fee time 21:00 (UTC)
Spread 1.8

BTC/USD

64,925.75 Price
-1.800% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 21:00 (UTC)
Spread 106.00

Gold

2,359.17 Price
-1.620% 1D Chg, %
Long position overnight fee -0.0195%
Short position overnight fee 0.0112%
Overnight fee time 21:00 (UTC)
Spread 0.31

ETH/USD

3,138.22 Price
-6.820% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 21:00 (UTC)
Spread 6.00

Why not NFTs?

In the statement, Minecraft said that “NFTs and other blockchain technologies create digital ownership based on scarcity and exclusion, which does not align with Minecraft values of creative inclusion and playing together.”

Non-inclusive NFTs creates the scenario of haves and have nots, said Minecraft.

The firm added that speculative pricing around NFTs encourages draws focus away from the game, which Minecraft thinks is inconsistent with the joy and success of the players.

Minecraft said it is concerned about third-party NFTs not being reliable and potentially fraudulent, since they depend on people creating blockchain technology “who might disappear without notice”.

Blockverse

An NFT project, Blockverse, which was supposedly built for the Minecraft universe, scammed an estimated $1.2m from early investors who bought NFT Blockverse characters from sites like OpenSea, the largest NFT marketplace.

The project also included a cryptocurrency called $Diamond. OpenSea uses ETH for transaction fees.

A rug pull happened in January, where the project creators took all the money invested and deleted the project website, Discord, and Twitter account, all too common in the cryptosphere.

Markets in this article

ETH/USD
Ethereum / USD
3138.22 USD
-230.11 -6.820%
SAND/USD
SAND/USD
0.31235 USD
-0.02136 -6.580%

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Related reading

The difference between trading assets and CFDs
The main difference between CFD trading and trading assets, such as commodities and stocks, is that you don’t own the underlying asset when you trade on a CFD.
You can still benefit if the market moves in your favour, or make a loss if it moves against you. However, with traditional trading you enter a contract to exchange the legal ownership of the individual shares or the commodities for money, and you own this until you sell it again.
CFDs are leveraged products, which means that you only need to deposit a percentage of the full value of the CFD trade in order to open a position. But with traditional trading, you buy the assets for the full amount. In the UK, there is no stamp duty on CFD trading, but there is when you buy stocks, for example.
CFDs attract overnight costs to hold the trades (unless you use 1-1 leverage), which makes them more suited to short-term trading opportunities. Stocks and commodities are more normally bought and held for longer. You might also pay a broker commission or fees when buying and selling assets direct and you’d need somewhere to store them safely.
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