Internet Cafes Emerging One After Another in Manila and Other Areas
Collecting Cryptocurrency Tokens Through Farm Games
Financial Authorities Troubled by Concerns Over Fraud and More
The Philippines is buzzing as a cryptocurrency frenzy sweeps the global market. The number of people earning money by collecting cryptocurrencies through blockchain-based games is rapidly increasing. Although the cryptocurrency market experienced a downturn just two years ago, causing significant disruption, the related market continues to expand unabated.
According to the New York Times (NYT) on the 18th (local time), internet cafes where one can play cryptocurrency-related video games are sprouting up all over the Philippines, including the capital, Manila.
A newly opened two-story internet cafe in Quezon City near Manila is a prime example. More than 20 people gather at this cafe to play games like Heroes of Mavia and Nifty Island, where they can earn cryptocurrency tokens. The NYT reported that when these earned cryptocurrency tokens are converted into the Philippine peso, players often make twice the daily minimum wage of $11 (about 15,000 won).
The NYT stated, "This internet cafe is a sign that a cryptocurrency boom is resurging in the Philippines," adding, "New outdoor advertisements for cryptocurrency companies are appearing one after another around Manila."
This atmosphere in the Philippines is due to the recent rapid surge in the global cryptocurrency market. Bitcoin, the leading cryptocurrency, soared past 75 million won during the height of the pandemic in 2021, then sharply dropped to around 21 million won last year. However, it began rising again in the second half of last year and recently surpassed 100 million won for the first time, showing an overheated market. On this day, Bitcoin was hovering around 90 million won. According to research firm Chainalytic, cryptocurrency trading volume in the Philippines increased by 70% in November-December last year compared to the previous two months.
The blockchain-based agricultural social game Pixels, which has recently become hugely popular among Filipinos aiming to earn money through cryptocurrency, is a prime example. In this game, users become farmers in a virtual world, growing and selling crops to make money. The number of Filipino users of this game surged more than tenfold, from 80,000 in November last year to 830,000 in March this year.
As the situation developed, overseas Filipino workers (OFWs) who had left the country to earn money abroad have returned and become Metaverse Filipino Workers (MFWs), earning cryptocurrency through gaming in their homeland, the NYT reported. The developer of Pixels stated, "30% of video game users based on cryptocurrency are in the Philippines."
This is not the first cryptocurrency boom in the Philippines. During the COVID-19 pandemic, as cryptocurrency prices surged, interest grew among Filipinos seeking profits through it. The NYT noted, "Although 40% of the Philippine population does not have bank accounts, most households have internet access, allowing cryptocurrency to spread even to rural areas."
During this period, Axie Infinity, a blockchain-based P2E (play-to-earn) game developed by a Vietnamese company, became popular in the Philippines. Players earned a cryptocurrency called Smooth Love Potion, which, during the overheated market in 2021, was even accepted as payment at some gas stations and restaurants in parts of the Philippines. However, a year later, as the cryptocurrency market cooled rapidly, the value of this cryptocurrency plummeted, causing significant losses for Filipinos who had even taken out loans to invest in the game.
Some players who made large profits at that time are now preparing businesses aligned with the current cryptocurrency boom. However, there are concerns that some vulnerable players from 2021 were exploited by these entrepreneurs for profit.
The Philippine financial authorities are reportedly struggling with this overheated cryptocurrency atmosphere. The value of cryptocurrency tokens based on games is much more volatile than leading cryptocurrencies like Bitcoin and is easily exposed to financial scams, necessitating measures to regulate them.
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