This is an inspirational story of how something unexpected can solve a problem for a group of people. NFTs in 2023 have proven to mostly be scams. People wasted and lost money on NFTs in 2022 and 2023 and they are considered unsafe by 2023 standards. That said there are stories to tell of how successes can be found for some in the moment which was in games. The Philippines was in the news throughout much of the summer of 2021 because there are countless reports of people earning a living just by playing games. Yes, you heard right – people are playing NFT games to earn a living! Let’s explore the world of NFT gaming and dive into how this is possible.
We all know NFTs are the craze these days, and it isn’t Beeple’s $69 million digital art NFT sale that’s making me say this. The NFT market exploded into a multi-billion dollar industry, with over $26 billion worth of crypto fueling this economy this year alone. For context, this exceeds the national GDPs of small countries such as El Salvador and Iceland.
A Community Of Earners In The Philippines
May 2021, YouTube channel PLAY-TO-EARN published a documentary about the P2E gaming revolution in Cabanatuan City, Philippines. It’s in this small rural city of just over 327,000 people where NFT gaming has changed the lives of an entire community. After the COVID lockdown mandates were issued people were out of jobs, closing up shop, and many were getting hospitalized due to the pandemic. Since the in-game rewards of NFT games can be converted into fiat money, gaming was creating an extra source of income for some, while replacing jobs for others.
Supplementing Income
Struggling shop owners resorted to playing Axie Infinity not only to pass time but to earn supplemental income. Lolo Silverio and Lola Vergie are both seniors at age 75 and 65 respectively but they were some of the few resilient business owners who refused to board up their windows. Lola describes her husband’s gaming tendency, “That is his hobby, even when he loses, he would still just play even without getting anything.”
Playing the game alone is fun, but when you factor in a profit incentive, it becomes that much more interesting. The store owners mentioned bringing in around 2,300 to 3,000 pesos before the pandemic hit, which equated to around $50 to $60. When the pandemic hit their pockets took a hit as well. Lola explains, “Now, we would just get 150 pesos”. This equated to roughly $3 at the time of filming. Though they didn’t disclose how much they made, they did say the little bit of extra income helps to pay for their medicines.
Making Ends Meet With Lost Jobs
Lolo and Lola own their own business so playing Axie Infinity was a source of valuable supplemental income. Others like them have resorted to playing the game to supplement their already low wages. For the unfortunate who lost their jobs, the P2E game became their lifeline.
Zabrina is a 33-year-old mother of two that just lost her job. Like her neighbors Lolo and Lola, she turned to Axie Infinity to provide a source of income. She mentions how her kids, “think that I still have a lot of money since I don’t let them know that we barely have any.” She’s able to maintain her lifestyle even after she lost her job albeit it’s just enough to cover only the basics. Zabrina elaborated that, “It sustained our daily needs, paid our bills, and debts, I was thankful to Axie because somehow it helped us.”
Macky is another example of someone who replaced their regular income with the earnings from Axie Infinity. As a 21-year-old tricycle driver, he has the energy to wheel people around the city but due to the lockdowns, customers that needed a ride were pretty much nonexistent. His tricycle was collecting dust as it sat there idle but that didn’t stop him from earning. Playing Axie Infinity allowed him to make a living to get through the tough times.
Is This A Viable Way To Earn A Living?
Earning $300 to $400 in a few weeks of playing the game may not seem like much but to communities like those in Cabanatuan City, this is more than what some would earn in a month. These results aren’t typical and now that the popularity of the game has skyrocketed, payouts are less in the ever saturated market. Additionally, as a result of the surging demand, the barrier to entry just got tougher with the price increases in Axie characters.
Axies are NFTs that are required to play the game but because the prices are no longer affordable, players are turning to “scholarships” from NFT gaming companies such as Axie University. As a scholar, you would work with the company to play the game and split the rewards from the game’s payout system. Companies like Axie University exist to help players who can’t afford to buy Axie Infinity NFTs in the game. This is a win-win situation because the company earns a portion of the rewards that the player generates.
Just about 7.3 million Filipinos were unemployed largely due to companies not hiring and the economy grinding to a halt. Howard is a 22-year-old graduate that couldn’t find any work. With a younger brother and sister to take care of, he turned to Axie University for help. Approaching the game like it’s a real job and working with them like it’s a company, he looks to his managers to teach him the ropes. They in turn instill leadership qualities in him by training him how to manage his assets and help other players like him.
After all, the organization is fostering a community that is eager to grow within the game by providing training, education, and mentorship. They work towards improving the skills of the players while maximizing returns. All of this sounds like a regular company doesn’t it? For workforce newbies like Howard, playing this game and other NFT games like it could very well be a viable way to earn a living. He explains that the earning potential in the game is around 15,000 pesos ($300) but he says that it’s, “fine because the regular jobs that I see here in the Philippines, they offer 10,000 pesos ($200) a month.”
NFT Gaming Involves More Than Just P2E
Scholarship companies like Axie University are being created regularly. These P2E guilds are set up to help players get their virtual foot in the door to NFT games especially where the initial costs of entry are expensive and out of reach. Players who become scholars can follow their prescribed set of rules to earn a fair income via in-game rewards. Those rewards can then be converted to crypto which can then be converted to fiat. The payouts from the in-game rewards are limited though because a portion has to go towards the host guild.
These days, the best way to earn on a P2E game is to join a guild because they’re able to front the bill to the more lucrative NFTs that have higher payouts potential. However, you don’t have to rely on them to earn a living. Traders and investors on Wall Street bet on securities with hopes that they will realize gains after a period. They exist on NFT games as well and they can make regular income provided they have the skills and experience to establish a net positive trading system.
NFT’s are digital representations of anything physical or digital and they too can be traded on exchanges for profits as well. This is exactly what’s happening within these NFT games. Angel is a special character in Axie Infinity and it has recently been sold for 300 ETH which was valued at around $1.1 million at the time of the sale. Hundreds of NFT flips like this happen every day and someone’s making money.
Can You Really Earn A Living Though?
Sure you can but it depends on many factors. Players in developing countries stand to make the most return on investment since living costs are relatively low. Communities in the Philippines seem to be embracing this type of earning hustle as evidenced by them being one of the largest consumers of P2E games.
Ijon Inton is another P2E player from Cabanatuan City and earning through Axie Infinity became a full-time job. With the help of his wife, they each take ten-hour shifts playing the game and were earning on average around 1500 SLP a day. SLP is the game’s currency that can be exchanged for fiat. At today’s prices, it converts to around $47.
Assuming they work a five-day workweek, this would translate to around $940, or about 45,859 PHP, a month. A one-bedroom apartment in Center City costs around 16,000 PHP so yes – P2E gaming is a viable way to earn a living for those in the Philippines. As long as you put in the time and the energy the math works out and you could live quite comfortably. Every P2E game has its set of rewards systems and currency pricing so keep this in mind before committing to playing.
One of the factors that will affect these conversion rates is the price of the in-game currency. SLP is currently roughly $0.03 a token. At its peak earlier in July it was $0.40 a token. That same daily earnings of 1500 SLP would have been worth $600. This translates to $12,000 a month or 598,662 PHP. With this kind of money, Inton would have been able to buy a Toyota Corolla sedan after two months of work. Of course, that’s given that the price of the token stayed the same during the two months.
Don’t Bet On NFT Games To Earn A Living
Let’s be frank here: don’t quit your day job to play NFT games for a living. Crypto prices fluctuate all the time and SLP is a good example of this. Although the U.S. dollar has gone through its fair share of turbulence especially with inflation at 6.8% as of December 2021, it is considered stable and is far safer to earn in dollars than in SLP. Earning in PHP would be a safer bet than relying on SLP for an income.
If you’re risk-averse and don’t have a solid source of income, don’t get into NFT games for the sole purpose of making a living. It’s clear that some communities in developing countries are making an actual living from playing NFT games, but this should only be seen as a special case. The in-game currencies in these P2E games are largely influenced by the game’s popularity, rewards payouts, NFT trading frequency, and availability.
All of these factor into the gameplay and mechanics which ultimately affect the spot price of the token. Yes, it’s like a micro-economy but because the games operate in their own small bubble, any small disturbances to it can have great effects. Until the in-game economies stabilize, and who knows if or when this will happen, those effects can either play in your favor or against you.
This post was written by Ironsung on Fiverr. I hire writers who are professionals in their fields to include more expertise to these posts. This allows us all to learn more and ultimately make better financial decisions. Subscribe for more investing posts. Have a lovely day.
Disclaimer
I want to make it unequivocally clear that I do not promote any cryptocurrency, nor do I endorse any crypto investments. This website is dedicated to providing information and insights into the world of cryptocurrencies to help you better understand what crypto is.
If you ever find yourself in a position where you need to explain your decision not to invest in cryptocurrencies to friends or acquaintances, you can use the content on this site as a guide to discourage people from falling victim to scams or making hasty financial decisions. My ultimate goal is to empower individuals with knowledge and awareness so that fewer people become financial victims.
Life is already challenging with its inherent obstacles; we don’t need the added burden of unscrupulous individuals looking to exploit our hard-earned money. Stay vigilant, stay informed, and make financial decisions with caution. Your financial well-being is of paramount importance, and it is my sincere hope that the information here can assist you in making prudent choices.
