Generations X/Y were frequently the cause of arguments and headaches with their children. Teenagers have immersed themselves in virtual worlds filled with fire-spitting dragons and club-wielding warriors. Parents worried that they were spending their money on activities that would have little long-term value.
Now, fast forward to 2022. The social stigma against video game players has disappeared in Manila, Philippines. However, skilled gamers are being hailed as innovative entrepreneurs who have helped to bring the country into the digital age. This positive perception of video game players is spreading across Southeast Asia. This shift in perception is largely due to one phenomenon: GameFi.
GameFi, also known as “play-to-earn” (P2E), is the financialization of gaming by leveraging blockchain technology. Video games were initially paid-to-play before being moved to a freemium model.
GameFi allows players to trade digital assets and convert them into fiat. This can help with financial transactions. Simply put, many of the so-called “game addicts” whom their parents worried about are now monetizing their talents and creating a sustainable income stream for themselves and their families.
GameFi is a significant game-changer for Southeast Asia. The current economic climate and rapid adoption of digital technology in the region could make GameFi the global capital of P2E.
According to official data, only 30% of the adults living in the Philippines have traditional bank accounts. This compares to close to 100% in neighboring Asia countries like South Korea, Taiwan, and Japan. People in Southeast Asian countries such as Vietnam, Indonesia, and Cambodia are also relatively unbanked.
However, there are some things that you should be aware of. top 15 countries that use MetaMask the Philippines was ranked first for most active users. Vietnam, India, Indonesia, and Thailand were second, third, sixth, seventh, and ninth respectively. These rankings show that many people from Southeast Asian countries are adopting Web 3 applications quickly and bypassing traditional banking channels.
Many players in the region make enough income from P2E to live comfortably or supplement their income. This is a different situation than the U.S., which has high living costs and where P2E income can be a significant source of income. GameFi will thrive in Southeast Asia.
My company was founded to address this need. Infinity Venture Crypto (IVC), has allocated a sizable portion of its inaugural fund, capped at $70 million, to support the development of blockchain projects globally with a focus on Southeast Asia.
Players need access to NFTs in-game in order to participate in P2E gaming. This can sometimes be difficult for players who don’t have the financial means. YGG makes it financially attractive for players who want to use their gaming skills in order to earn more money. COVID-19, which made many players jobless in Southeast Asia, also accelerated the development of P2E gaming.
GameFi’s Pain Points
Although the P2E market is growing at a breakneck pace in Southeast Asia’s P2E sector, many trailblazers struggle to keep up. They need to address the bottlenecks that prevent players from joining P2E gaming more easily and slow down the growth of the GameFi ecosystem. An example is the lack of guild customer relationship management (CRM) software to help track scholars’ performance and withdrawals. Google Sheets and Excel are now used by scholar managers and guilds to complete the work. Scholars have difficulty converting and using the in-game tokens that they earn in real life.