The price of Tezos (XTZ) soared to $5.48 after trading below $4.00 in points yesterday.
Markets are reacting favorably to this morning’s announcement that Ubisoft would become the first major video game publisher to create NFTs for games.
Shares in the French company are trading 4% higher today. But Tezos, his Blockchain partner, is the real winner. The price of Tezos’ native XTZ currency jumped after the news, increasing 37% in the past 24 hours. It traded at $5.48 after dropping below $4.00 on Monday, according to CoinGecko.
Ubisoft, maker of the Assassin’s Creed and Prince of Persia games, announced that its new Ubisoft Quartz platform would allow players to purchase and earn in-game items that are coined as Tezos NFTs, the digital tokens that represent ownership of an asset. The non-fungible tokens will make their first appearance in Tom Clancy’s Ghost Recon Breakpoint.
Integrating NFTs can increase gamers’ investment sentiment in games, while laying the groundwork for interoperability between games and secondary markets to profit from rare items.
The price of Tezos’ coins may have been boosted by a late-morning announcement that the Blockchain had increased its energy efficiency per transaction by 70% or more. In short, it costs much less to send and receive XTZ, or to do other network transactions like buying NFTs – than before.
This should somewhat eliminate criticism from gamer circles that NFTs are bad for the environment because they require the unnecessary production of electricity to generate, although the cultural value of video games is also up for debate.
Tezos and Ubisoft tried to avoid such arguments in the passage, peppering the press release with distinctions between the Proof of Bet Blockchain and its energy-dependent cousin Bitcoin, arguing that transactions in the former use “more than 2 million times less energy” than those in the last.