The latest trend in the crypto world – GameFi – operates on a play-to-earn model. This means that users can earn money by playing games. And while it might seem like a combination of pleasure and utility, not everyone agrees.
One such example is Dash Huang – CEO of a popular Chinese gaming distribution platform Tap TapAccording to him, blockchain play-to-earn games are essentially gambling games and Ponzi schemes.
The CEO of TAPTAP, one of the China’s largest game distribution platform, said that the current blockchain games of Play to Earn are essentially gambling games and Ponzi schemes. https://t.co/zT55gDTpVC
— Wu Blockchain (@WuBlockchain) December 16, 2021
Unlike traditional games, players of blockchain-based games receive rewards for completing specific tasks. Although GameFi’s origins date back to 2017, it was the COVID-19 pandemic that really sparked the hype for monetizing gaming.
Many people have managed to generate really good income this way. Mainly thanks to the pioneering title Axie Infinity. This animated game, created by the Vietnamese studio Sky Mavis, has become the main source of income for many people in the Philippines and in hyperinflation-stricken Venezuela.
According to TapTap’s CEO, blockchain is a good fit for gambling. Play-to-earn is more like a Ponzi scheme for gullible investors.
China warns against play-to-earn games
That Beijing has no love for cryptocurrencies is clear. Now, that’s been confirmed once again by Chinese state television, which has issued a warning about play-to-earn games like Farmers World. China Central Television (CCTV) has called them “scams.” It has also quoted industry experts who have likened the mechanism to a Ponzi scheme.
Despite China’s aversion to anything cryptocurrency-related, the country has a very different stance on the metaverse. They are so interested in the topic that in November, a state-sponsored project China Mobile Communications Association (CMCA) the country’s first industry group dedicated to the metaverse, called the Metaverse Industry Committee, was even formed.
