Gaming as opposed to mining. How cryptocurrency gaming fever is capturing developing economies
While Hermitage Museum engages in the NFT art objects market, allowing Till Lindemann to sell his post-scandalous tokens, a new gold rush is gaining momentum: NFT games, where you get paid for the time you spend playing. Until recently, entrance to the world of NFT games might cost $2,000. But now, with the cost dropping to zero, players from all over the world can join—Filipinos, Vietnamese, citizens of Chelyabinsk, Moscow suburb dwellers–anybody can join.
Thousands of these gamers have created their own crypto-economy, where people playing NFT games earn money by just being in the game. Sergei Sergienko, the founder and ideological mastermind of the Crypto Gaming United (CGU) platform, explained how it works, whether there is a catch, and why there is no need to pay for the entry.
Who is Sergei Sergienko?
Sergei is a serial entrepreneur in the field of cryptocurrencies, DeFi and blockchain apps. One of his best-known projects is Chrono.Tech, a global blockchain project headquartered in Sydney. The startup helps HR managers and employees find each other, simplifies payments and reduces employee recruitment costs.
What is CGU?
“I have always adhered to the principle that people should be paid cryptocurrency for the time they spend working,” says Sergei. “That was the basic principle of the Chrono.Tech startup. And when we added a game section to the system, the growth was insane – our traffic tripled.”
I realised this approach could win over the NFT sphere. The idea is that people get SLP tokens for their time in the game, and then they can exchange them for cryptocurrency or sell them to other participants. The principle is called “Play-to-earn.”
Unlike other games, where players have to buy expensive characters and earn money from them, we decided to rent out digital heroes. A player doesn’t need seed money, anyone can start earning immediately.
Then everything fell into place: we already had a working payment infrastructure, we could also control the entire gaming process – from earnings to development. The first launch of the game platform took place in Russia and the Philippines.
How does Play-to-earn system work?
In the game Axie there are digital characters in the form of NFTs. You need them to start playing the game and receive tokens. Due to the high demand for these characters, they cost about $600 each, and you need three of them to start playing the game. That means a person needs to invest not quite $2k to get the in-game cryptocurrency.
That’s where we come in, buying game characters and assembling them into a team with open access for players who can rent these characters from us. The only thing a new player needs is to have an Android device and internet access.
As well, in order to maximise their earnings from cryptogames, we train players, using a training course we designed to help them pump up their skills.
Who invested in the project?
At launch, venture capitalist Mark Carnegie (MHC Digital Assets) and the Blockchain Assets fund led by Ian Love and myself invested in the project. The total seed investment was $5 million, which is more than the August investment round of our closest competitor, Yield Guild Games. This will enable us quickly to grow our teams of players and become the largest gaming platform in the NFT.
CGU tokens will be made available to the public early October. Our IDO will be held to attract investment in order to increase the number of in-game teams on the project. The more game teams there are, the more SLP tokens players can earn.
Regions where the CGU will appear
We are currently looking for teams of players in a wide variety of regions and countries, including Venezuela, Philippines, CIS countries (Russia, Belarus, Ukraine, Kazakhstan, etc.), Papua New Guinea, India, Sri Lanka, Zambia, Nigeria, South Africa, Mauritius, Madagascar, Indonesia, and Vietnam.
We are looking for people who want to increase their income by at least $10 per day which, for many people in developing countries is a reasonably high income, difficult to get even with a full-time job.
Because we are not looking for players to buy characters, but rather renting them out, the earnings are divided as follows: 45% goes to the player, 15-20% goes to infrastructure maintenance and technical support, with the remaining 35-40% going to platform investors.
A beginner player can earn about $15 per day, or about a $7 net gain. And we already have players who are generating $200 net profits per day, achieving the game skills needed for those returns in only two weeks. And they are just ordinary guys from Chelyabinsk, Moscow Region and other regions of Russia.
In terms of annual revenues, CGU is earning around $5.5 million after only two months from the launch of the project. Our immediate user targets are 1 million after IDO, but there is no limit. My hope is to provide many people in Third World countries an opportunity to earn extra income.
A new time economy
As Elon Musk says, time is the most valuable currency. This is an important principle behind all of our projects. Philosophically, time is something always in short supply, especially at the end of his or her life’s journey.
Nowadays, people have finally realized through such NFT games that their time is worth something and, based on their skill and talents, they can exchange time for certain material goods. I believe that this is the birth of a new economy: the time economy.
Even in countries with weak economies and fragile political institutions, we are able to show people that their time is genuinely valuable.
What happens to the NFT?
At present, we live in a world of zero bank rates, and even negative rates in some countries. If a person has savings, they can’t simply deposit them in a bank savings account – inflation or negative rates will “swallow” them.
Even if you have a pension fund worth hundreds of billions of dollars, you would be concerned about how to invest so that the inflation-adjusted returns are non-zero, like the safest US government bonds.
All investors should consider investing at least part of their savings in cryptocurrency projects that are growing to the order of tens or hundreds of percentage points. This includes the most popular current NFT projects.
We have been witnessing the influx of new funds into cryptocurrencies over the past months.