The collapse of Play-to-Earn (P2E) economic models stems from several flaws. Oversupply of in-game tokens, driven by speculative hype, floods markets, devaluing rewards and discouraging players. Many P2E games prioritize profits over engaging gameplay, leading to shallow experiences that fail to retain users. High entry costs, like expensive NFTs, exclude casual players, shrinking the user base. Ponzi-like structures, where early adopters benefit at the expense of newcomers, erode trust when returns diminish. External market volatility, especially in crypto, destabilizes token values, undermining player confidence. Finally, regulatory scrutiny and scams expose vulnerabilities, deterring investment. Sustainable P2E models require balanced tokenomics, quality gameplay, and transparent governance to avoid these pitfalls and maintain long-term viability.