Axie Infinity, is a blockchain-based play-to-earn game that exploded in popularity in developing nations such as the Philippines as Covid-19 destroyed jobs and forced many to stay home.
Detractors warn the game is a “house of cards”, some likening it to a fraud scheme driven by hype and speculation.
“At first, I was sceptical because I thought it was a Ponzi scam,” said Lumabi, 26, who began playing last June after losing his job at an advertising firm and making a failed foray into online selling.
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About 35 percent of Axie Infinity traffic — and the biggest share of its 2.5 million daily active users — comes from the Philippines, where high proficiency in English, strong gaming culture and widespread smartphone usage have fuelled its popularity, Sky Mavis said.
In Axie Infinity, players participate in battles using colourful blob-like Axies, and are mainly rewarded “Smooth Love Potion” (SLPs) that can be exchanged for cryptocurrency or cash — or invested back into the game’s virtual world Lunacia.
An Axie is an NFT — a unique, non-fungible token, with a particular set of abilities and characteristics. Like NFT pieces of art, they are stored on the blockchain — a digital ledger that cannot be changed.
“We provide the players with the assets that they need to generate income for themselves,” said Luis Buenaventura, who runs Yield Guild Games in the Philippines, one of the many companies offering scholarships.
“In exchange for that, we ask for 10 percent of their earnings.”
Buenaventura said many of his players were in their early 20s and from households making less than $400 a month.
He described their monthly Axie winnings — around $200 — as “life-changing”.
Adding to the woes of players in the Philippines, the country’s tax authority said last year that players should pay tax on their winnings from the game.
