A new style of gaming has become popular in the world of crypto games called “Play to Earn.” In Play to Earn games, players are rewarded crypto tokens from gameplay that can be sold and converted into any other form of currency. The biggest game in this space right now is Axie Infinity (AXS), which has nearly a million players and has generated $343M in the past month. Here’s where it gets crazy though: half of those players are from the Philippines and many of them are doing this as a full-time job. Some individuals are reportedly earning ~$20/day, which can be as high as 5-10x their previous pay.
To get started in Axie, players need to have three of the game’s creatures, which sell for roughly $500 each. In the Philippines, an up-front investment of $1,500 is pretty steep, but that’s where the services of Yield Guild Games (YGG) come in. YGG buys assets in Play to Earn games and loans them out to people. Of the returns made from playing with the borrowed game assets, 10% goes to YGG, 20% to their community managers who source players and give support, and the game players retain 70%. The company currently has just over 4,000 people borrowing game assets.
YGG isn’t a typical crypto project either; they have major investors behind them. They raised $1.325M from Delphi Digital (a crypto research and investment firm) and $4.6M from a16z (a top Silicon Valley venture capital investment firm). At this time, Yield has purchased NFT gaming assets in 8 different Play to Earn crypto games.