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TapTap CEO Dash Huang believes Play-to-Earn games are pyramid schemes.
Participants in Play-to-Earn blockchain games receive financial rewards for completing certain tasks. The first GameFi appeared in 2017, but it was only during the pandemic that players were able to truly monetize the blockchain gameplay.
The idea of ”play to earn” has evolved into NFT-powered online video games such as Axie Infinity.
Axie Infinity is an animated video game where you have to train pets. It was developed by the Vietnamese studio Sky Mavis, and has played a critical role for some of the Philippines who have been hit hard by the coronavirus pandemic. In Venezuela suffering from hyperinflation, many people make their living playing crypto-video games.
But according to the head of TapTap, the blockchain network is an excellent breeding ground for risky gambling, and the play-to-earn scheme is more like a Ponzi scheme for gullible individual investors.
Beijing does not like cryptocurrencies and everything related to them. Chinese state television broadcasts a warning to citizens against participating in blockchain-based online simulation games such as Farmers World. China Central Television (CCTV) called the games a “scam”.
CCTV claims that these games have low-budget web pages and cheat players. It also cited industry experts who compared the game mechanism to a Ponzi scheme.
Despite China’s rejection of anything even remotely related to cryptocurrencies, the country has taken a very different stance on Metaverse. In November, the state-controlled China Mobile Communications Association (CMCA) even set up the country’s first metaverse industry group called the Metaverse Industry Committee.
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