Axie Infinity, one of the largest blockchain-based games on the market, is providing a way for users who have lost their jobs due to the pandemic to earn money.
Axie Infinity’s white paper contains the following information:
“Axie Infinity is a Pokémon-inspired universe where anyone can earn tokens by playing skillfully and contributing to the ecosystem. Players can use their pets to battle, collect, raise, and build a land-based kingdom.
“All art assets and Axie genetic data are easily accessible to third parties, allowing community developers to create their own tools and experiences in the Axie Infinity universe…”
“The key difference between Axie and a traditional game is that our players are rewarded for their contributions to the ecosystem through the use of Blockchain economic design. This new gaming model has been dubbed “play to earn.” Thousands of players from developing countries have joined Axie in search of a new source of income during the Covid pandemic.
Jobless people all over the world are turning to blockchain gaming as a potential side hustle. The report focuses on the efforts of Vincent Gallarte, a recently laid-off IT analyst who began playing Axie Infinity to supplement his income.
Sky Mavis, a Vietnamese game developer, created Axie, which allows users to collect tradeable coins as a gateway to crypto-assets. In May, the project was able to raise $7.5 million in a funding round that included billionaire Mark Cuban and Reddit co-founder Alexis Ohanian.
According to the report, Axie’s user base has exploded this summer, rising from 30,000 daily users in April to 1 million in August. Over the last month, Axie’s network has generated approximately $30 million in Ether transfers per day, with the majority of users concentrated in developing countries such as Brazil, Venezuela, and the Philippines.
Despite providing a side-hustle opportunity, some are concerned that the platform will lead to player exploitation and abuse. To get started, new users must purchase three “Axies,” which cost around $200 each.
Vanessa Cao, founder of BTX Capital, told us that the Axie model is “unhealthy and unsustainable.”
“Players must pay hundreds of dollars up front just to participate. It’s a faulty notion. You can’t expect people to pay before they know what the game is about.”
Popular crypto analyst and influencer Elliot Wainman predicted in late July that gaming-based blockchain projects would be the next big driver of cryptoasset adoption.
“Games are the only thing I see as truly decoupled from the cryptocurrency ecosystem. Because when you play a game and have fun with it, it has intrinsic value.“
As an example of the industry’s potential, Wainman cited the “staggering growth” of the blockchain-based game Axie Infinity:
“I’ve been saying for a long time that users are the key, because if you have users, you have network growth, and if you have network growth with [a] hard-cap supply of assets, you almost certainly have asset appreciation. It’s a very obvious way to add value to crypto ecosystems.“