The Perception of Filipinos on the Advent of Cryptocurrency and Non-Fungible Token (NFT) Games

Abstract

Purpose – This study aims to shed light on the rise of play-to-earn games in the Philippines alongside cryptocurrency. The lack of research and public understanding of its benefits and drawbacks prompted the researchers to investigate its market. As such, the study tried to look into the risks and benefits of crypto gaming if it would be regulated by the government, and how market volatility influences the churn rate of crypto games. Method – The research used a descriptive study to determine the perception of people who are engaged in playing “Axie Infinity”. The research also used non-probability sampling using the snowball method. The only tool used to collect data was Google Forms. Furthermore, the study used Statistical Package for Social Science (SPSS) to analyze the descriptive data. Result – The results showed that most players spend their time playing Axie Infinity for about 1 to 4 hours a day. Predominantly, the return of investments for playing the game will take about 1 to 3 months. It also showed that these players agreed that there is a possible financial instability in a volatile market. With this, they have a high trust issue in terms of price manipulation, privacy and security, and its design and usability. Conclusion – Understanding the cryptocurrency market requires comprehending the perspective of the people who are engaged in a play-to-earn game, and their concerns are critical for any government actions aimed at regulating self-employed income earners playing (Non-fungible Tokens) NFT games in the Philippines. Recommendations – It is suggested that further research must be conducted to understand how self-employed Filipino income earners comprehend NFT gaming and cryptocurrency, impacting their level of interest and participation. Research Implications – Taxing NFT games without sound regulatory frameworks may result in the disarray of this alternative income source. Therefore, the government must tread carefully to avoid a market collapse or other unfavorable outcomes.

Profiling the Potential Risks and Benefits of Emerging “Play to Earn” Games: a Qualitative Analysis of Players’ Experiences with Axie Infinity

“…This may be particularly so if the players have a strong financial need to win and earn an income or if they have an existing history of problems associated with gambling, involving chasing outcomes to recoup earlier losses or financial investments. Surveys suggest that less than half of AI players appear to report making a profit, despite the fact that many PTE gamers report, on average, spending 4 h a day for 2-3 months to receive return on their initial investment (Francisco et al, 2022).…”

“…The overall concept of PTE gaming is an attractive business model from both a consumer and industry perspective. For players, PTE provides earning potential which may be particularly attractive for otherwise unemployed or low-income earning individuals (Nadini et al, 2021) or those that reside in the Philippines and other third-world nations (Francisco et al, 2022). For the industry, money is made through the sale of NFTs and appreciation of the in-game currency, which is usually privately sold (at a very low price) to early investors and the development team prior to the games release.…”

Understanding the mechanics and consumer risks associated with play-to-earn (P2E) gaming

“…In addition to concerns about the increasing monetary cost of games, another narrative within the gaming community has been that gaming, in general, has not been a well-rewarded activity ( De Jesus et al., 2022 ; Francisco, Rodelas, & Ubaldo, 2022 ). Despite the emergence of a growing and multi-billion-dollar esports industry that benefits a small elite percentage of gamers, most people who engage in intensive (and often competitive gaming) usually have little to show for all their effort.…”

“…If it is possible for early investors and owners of NFTs to lend out their assets to others, it is possible that people (and young people in particular) from developing nations may be most attracted to scholarship roles. It is known, for example, that some gaming guild projects target developing nations as the most likely source of potential participants ( Francisco et al., 2022 ). For example, Axie Infinity (AI) has obtained a lot of interest in countries such as the Philippines because of its potential attractiveness as a source of income to lower income gamers.…”

Play-to-earn: Desmistificando ganhos e riscos de jogos NFT

“…Embora jogos blockchain estejam disponíveis desde 2017, eles só passaram a chamar a atenc ¸ão da indústria de videogames a partir de 2021, com o sucesso de alguns títulos, como Axie Infinity, durante a pandemia de COVID-19 [Francisco et al 2022]. Até o início de 2020 não havia um grande caso de sucesso usando blockchain.…”