Cryptocurrency gaming fever captures developing economies: how does it work?

Money for gaming; it’s nothing extraordinary, but it’s fundamentally a new level of game earnings. NFT (non-fungible token) games generate millions of dollars for players. The scheme of this business is pretty simple…

NFT games provide the opportunity to get the payment for the time you spend playing. Until recently, entrance to the world of NFT games would cost approximately $2,000. But now, with the cost dropping to zero, players from all over the world can join: Filipinos, Vietnamese, Moscow suburb dwellers etc.; anybody can join. The only thing a new player needs is to have an Android device and internet access.

Thousands of these gamers have created their own crypto-economy, where people playing NFT games earn money by just being in the game.

“I have always adhered to the principle that people should be paid cryptocurrency for the time they spend working. That was the basic principle of the Chrono.Tech startup (a global blockchain project headquartered in Sydney). And when we added a game section to the system, the growth was insane – our traffic tripled,” – said Sergei Sergienko, the founder and ideologist of the Crypto Gaming United (CGU) platform.

What is the main principle?

The idea in game earning is that people get SLP tokens for their time in the game, and then they can exchange them for cryptocurrency or sell them to other participants. This principle is called “play-to-earn.”

Unlike other games, where players have to buy expensive characters and earn money from them, CGU founder decided that people can rent out digital heroes. A player doesn’t need seed money, anyone can start earning immediately.

In the game Axie, there are digital characters in the form of NFTs. You need them to start playing the game and receive tokens. Due to the high demand for these characters, they cost about $600 each, and you need three of them to start playing the game. That means a person needs to invest to play, but not quite $2k to get the in-game cryptocurrency.

In order to maximise their earnings from crypto-games, CGU coaches players using a training course designed to help them hone their skills.

Who invested in the project?

At launch, venture capitalist Mark Carnegie (MHC Digital Assets) and the Blockchain Assets fund led by Ian Love and Sergei Sergienko invested in the project. The total seed investment was $5 million, which is more than the August investment round of the closest competitor, Yield Guild Games.

CGU tokens will be available to the public in October 2021. The IDO will be held to attract investment in order to acquire more game assets and increase the number of in-game teams on the project. The more game teams there are, the more SLP tokens players can earn.

Regions where the CGU will appear

The platform is looking for teams in a wide variety of countries: Venezuela, Philippines, CIS (Belarus, Russia…), Papua New Guinea, India, Sri Lanka, Zambia, Nigeria etc.

CGU needs people who want to increase their income by at least $10 per day. It’s quite high for many residents of developing countries.

Game economics

The earnings are divided as follows: 45% goes to the player, 15-20% goes to infrastructure maintenance and technical support, with the remaining 35-40% going to platform investors.

A beginner player can earn about $15 per day, or about a $7 net gain. CGU already have players who are generating $200 net profits per day, achieving the game skills needed for those returns in only two weeks. And they are just ordinary guys.

In terms of annual revenues, CGU is earning around $5.5 million after launching only two months ago. The immediate user targets are 1 million after IDO, but there is no limit.

A new time economy

Time is the most valuable currency. Nowadays, people have finally realized through such NFT games that their time is worth something and, based on their skill and talents, they can exchange time for certain material goods. This is the birth of a new time economy.

We live in a world of zero bank rates, and even negative rates in some countries. If a person has savings, they can’t simply deposit them in a savings account – inflation or negative rates will “swallow” them.

Even if you have a pension fund worth hundreds of billions of dollars, you would be concerned about how to invest so that the inflation-adjusted returns are non-zero, like the safest US government bonds.

All investors should consider investing at least part of their savings in cryptocurrency projects that are growing to the order of tens or hundreds of percentage points. This includes the current most popular NFT projects.

About the Author: Ajay

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