Closed economy tokens often get distributed in games, metaverse, social media and they are not much usable outside. They do serve a purpose of reward yet they don't convert much into FIATs and sometimes they are used for laundering. I have written an article on this topic, do give it a read :) Check out the article: https://leofinance.io/@esmeesmith/closed-economy-blockchain-tokens-do-they-have-future