The world of crypto gaming has introduced novel ways for players to earn digital tokens and assets, but with these opportunities come hidden dangers, hodlers! The Philippine National Police Anti-Cybercrime Group (PNP ACG) has cast a watchful eye on various cryptocurrency gaming schemes, cautioning Filipino citizens about the potential pitfalls and schemes that threaten their investments. Among these, the play-to-earn model utilized by Axie Infinity, a popular game on the Ethereum blockchain, has raised concerns.

Read more: Ctrl+Alt+Play: Axie Infinity’s Evolution Through Mavis Hub’s Greenlight Initiative


Play-to-Earn Alarms the Philippine National Police

In an effort to safeguard its citizens from financial exploitation, the Philippine National Police Anti-Cybercrime Group (PNP ACG) has turned its attention to the world of cryptocurrency gaming. The rise of play-to-earn models, which offer players the chance to accumulate digital assets while playing, has attracted scrutiny due to associated risks. One such game, Axie Infinity, has become a focal point in this discussion.

Read more: Ethereum (ETH) Price Prediction 2023 – 2024: Smart Contracts, Liquidity Staking Tokens and Post-ETFs Era

Axie Infinity’s Play-to-Earn Model

Axie Infinity, a metaverse game built on the Ethereum blockchain, has gained significant popularity. To participate, players must acquire Axie characters, a requirement that comes with a financial commitment. The PNP ACG expresses concern that this model necessitates an initial investment of around $300 before players can start earning. In contrast, the traditional gaming industry typically involves an average expenditure of up to $100 per user. This pricing structure has raised eyebrows and prompted discussions about the financial accessibility of play-to-earn games.

Source: Cointelegraph

Navigating Risks in Crypto Gaming

The allure of crypto gaming is coupled with inherent risks that distinguish it from conventional gaming or investing in cryptocurrencies. The ease of losing digital tokens and nonfungible tokens (NFTs) is a pressing concern highlighted by the Filipino ACG. Factors such as sending tokens to unsupported wallet addresses, market volatility, and the prevalence of online scammers contribute to a landscape where investments are far from secure. The PNP ACG’s cautionary message emphasizes that blockchain security does not necessarily extend to the entirety of gaming platforms.

Source: Axie Infinity

Adopting Best Practices

Echoing advice that holds true for the wider crypto community, the PNP ACG recommends diligent research and vigilance when venturing into the world of crypto gaming. Conducting thorough investigations into ecosystems, founders, and underlying technologies — encapsulated in the adage “do your own research” (DYOR) — is essential. Caution should be exercised when interacting with unfamiliar individuals and avoiding potentially malicious phishing links. These best practices mirror the principles observed by prudent crypto investors.

A Glimpse into Future Collaborations

As the concerns over crypto gaming risks grow, the Department of Information and Communications Technology (DICT) of the Philippines has taken a step towards enhancing blockchain adoption. Collaborating with the Blockchain Council of the Philippines (BCP), the DICT aims to expedite the integration of Web3 technologies within the region. This partnership reflects the ongoing efforts to balance innovation with security in the realm of emerging technologies.

Read More:

Axie Infinity’s play-to-earn model serves as a microcosm of the broader challenges inherent in the world of cryptocurrency gaming. The PNP ACG’s scrutiny underscores the need for a balanced approach that embraces innovative opportunities while safeguarding against potential exploitation. As players continue to navigate the intricate landscapes of digital tokens and blockchain-based games, a comprehensive understanding of risks and best practices will be crucial in realizing the true potential of this evolving ecosystem.

DisclaimerAll materials on this site are for informational purposes only. None of the material should be interpreted as investment advice. Please note that despite the nature of much of the material created and hosted on this website, HODL FM is not a financial reference resource and the opinions of authors and other contributors are their own and should not be taken as financial advice. If you require advice of this sort, HODL FM strongly recommends contacting a qualified industry professional.