Play-to-earn: Can You Profit Playing Crypto Games?

It’s no secret that gaming has turned from a passive hobby into a multi-billion-dollar industry. It’s not just video games that have advanced. The entire iGaming sector has progressed, along with online casino games. However, thanks to blockchain technology and the resulting NFT, a new concept of gaming for profit was established, revolutionizing the industry. Today, many players make a living playing these games, such as Axie Infinity.

In the 50-year history of video games, games have primarily been a source of entertainment. Something to take a break from a busy day at work. Now, a new generation of video games is utilizing blockchain technologies, such as NFTs, to reward players with cryptocurrencies. In some countries, these play-to-earn games already allow players to earn a living playing video games. Also, scholarship programs and academies are popping up to help players navigate this new world.

While some have welcomed the concept, claiming that it allows users to receive rewards for activities they would have previously done for free, many players have expressed concerns about the unwanted intrusion of “capitalism” into the world of gaming, which is primarily intended as a relaxed escape from everyday reality. As always, both sides have valid arguments. So we decided to bring this topic closer to you, and you can make your own judgment.

What are Play-to-Earn Games?

Simply put, they are video games in which the player can earn rewards just by participating in them. While people have been making money playing video games for years through practices such as “gold mining” and selling gear on unofficial marketplaces for in-game items, the advent of blockchain technology and NFTs has fundamentally changed the rules of the game. First of all, we note that the sale of gear has led to illegal online betting on e-sports. This has particularly shaken the community, as underage players have been able to gamble.

As you probably already know, NFT tokens are cryptographically unique tokens that can be used to prove ownership of content. In blockchain games, they allow users to take ownership of in-game items, such as virtual clothing or land. Unlike conventional games, in which in-game items are stored on separate data networks. Simply, NFT players can actually own the unique items they purchase. In addition, once you own an NFT, you can freely sell it outside the platform on which it was created. This is, of course, not possible with regular games.

This means that NFTs representing in-game items can be traded for fiat currency on any NFT market. Because these NFTs are rare, they have real value. In conventional games, there is no incentive to play other than pure enjoyment. The relationship is one-way: you pay to play. Unless you’re a professional eSports player or a streamer with a vast following, you’ll never be able to monetize your playtime. In contrast, blockchain games offer players the chance to earn real money.

2021: The Year of the Rise of Play-to-Earn Games

The biggest play-to-earn game is Axie Infinity, a Pokémon-style game launched in 2018 by independent studio Sky Mavis. In this game, players collect virtual creatures called Axies, which are represented by NFTs. Each Axie has unique strengths and weaknesses, and players can adventure, fight, and breed their Axies as they play. Players receive Smooth Love Potion (SLP) crypto tokens as rewards for battles. Axie Infinity Shard (AXS) tokens are used to vote on decisions regarding the game and its future development.

With 2.8 million daily users and a total trading volume of $3.8 billion, Axie Infinity has become one of the dominant games for earning money. In countries like the Philippines and Indonesia, people play Axie to support their families. For example, there are interesting stories of residents in these countries earning money for their entire houses by playing Axie Infinity. There have also been “Axie Scholarship” programs, such as those offered by Yield Guild Games. These allow Axie owners to lend their NFTs to other players.

Play-to-earn games are also a significant contributor to the broader adoption of cryptocurrencies. According to Axie Infinity co-founder Alexander Leonard Larsen, half of the game’s players have never used a cryptocurrency app. However, the game requires funds to play. Before you can start playing, you need to purchase three of Axie’s NFTs, each of which can cost hundreds of dollars. To address this issue, Axie plans to introduce free starting eights with limited earning opportunities to give new players a taste of the game.

Play-to-Earn Games in the Making

More and more blockchain projects are moving into the play-to-earn field. Perhaps the most famous being the NFT avatar series Bored Ape Yacht Club, which has announced its own upcoming play-to-earn game in its pipeline. We recently reported on BAYC and their big ambitions, including issuing their own cryptocurrency, ApeCoin.

Another similar project is The Forgotten Rune Wizard Cult, which announced cooperation with the metaverse developer Bisonic. The project plans to use a “create-to-earn” model where the community will create a game story and custom NFTs. While the semantics are slightly different, there’s no doubt that wizards will play in a world where they can own land, gather resources, craft items, forge NFTs, and actually help build the virtual world around them.

Loopify is a well-known NFT collector, writer, and creator who recently tweeted that 2022 will be “the year of blockchain games”. He invested his money in the development of the massively multiplayer online role-playing game (MMORPG) Treeverse. Reminiscent of classic games like good old Runescape, Treeverse will allow players to exchange in-game assets in the form of NFTs. It will additionally reward them for playing. Currently, Treeverse is still in public alpha as the team continues to refine the game’s art.

Conclusion

Ultimately, the impact and power of gaming for money is significant. The concept provides an environment where anyone, anywhere, can earn a living by simply playing games. On the other hand, some argue that the introduction of realistic economic models and incentives will turn gaming from an escapist entertainment to a purely capitalist sector, thereby losing its appeal. It seems that the value of cryptocurrencies will greatly influence this futuristic concept. What do you think?

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