Manila, Philippines – On a bustling Tuesday evening, the second floor of Joniel Bon’s internet cafe buzzed with activity as approximately 20 individuals immersed themselves in the vibrant realm of cryptocurrency and video games.
Ensconced at computers equipped with expansive curved monitors, patrons meticulously navigated the metaverse, engaging in titles such as “Heroes of Mavia” and “Nifty Island,” enveloped by the soothing melodies of Taylor Swift and Maroon 5 emanating from the speakers.
For these individuals, virtual gaming extended beyond mere entertainment, serving as a lucrative full-time pursuit. Determined to maximize their earnings, some had settled in with slices of pizza to sustain them throughout the night. Diligent completion of daily challenges rewarded players with cryptocurrency tokens, which were subsequently converted into pesos, the local currency.
Remarkably, these online endeavors yielded earnings that often surpassed the Philippines’ minimum wage of $11 per day, a compelling incentive that had reignited the nation’s passion for cryptocurrency.
Bon, a 40-year-old former information-technology worker, shared the story of his entrepreneurial journey. Two years prior, a catastrophic crash in the cryptocurrency market had extinguished his aspirations for a thriving gaming collective. However, unwavering optimism had propelled him to persevere, and today, his internet cafe stood as a testament to the resurgent fervor surrounding cryptocurrencies in the Philippines.
“There came a time when I had to declare my unwavering belief in this,” Bon recounted. “Despite the setbacks, we persisted and emerged from the depths of adversity.”
The Philippines has long occupied a prominent position in the global cryptocurrency arena, and the current resurgence is further evidenced by a proliferation of crypto company billboards adorning Manila’s cityscape. Additionally, Filipinos are increasingly embracing “Pixels,” a crypto farming game that has emerged as a novel source of income.
Moreover, overseas Filipino workers (O.F.W.s) are returning to their homeland to pursue careers as “metaverse Filipino workers” (M.F.W.s).
Data released by Chainalysis, a research firm, indicates that the Philippines witnessed a remarkable 70% surge in crypto transaction volume between November and December, reaching $7.3 billion.
The resurgence of crypto has not gone unnoticed by Philippine authorities. Kelvin Lee, a former commissioner of the Securities and Exchange Commission, acknowledged the regulatory challenges posed by the technology’s growing popularity during a crypto conference held in Manila last November.
Cryptocurrencies have historically been associated with fraudulent activities and scams. Moreover, the tokens distributed by crypto-earning games exhibit greater volatility than established cryptocurrencies like Bitcoin and Ether, raising concerns about the potential for another market collapse.
“Our focus is on fostering a secure operating environment,” Lee stated. “However, we recognize the potential benefits a robust crypto industry could bring to the Philippines, an economy largely reliant on outsourced customer service and information technology.”
While acknowledging that cryptocurrencies have provided a financial lifeline for many Filipinos, some have expressed a willingness to abandon the industry should it experience another downturn. Ian Dela Cruz, a former Axie Infinity player from Pampanga, shared his cautious perspective.
“The game flourished when everyone was actively participating,” Dela Cruz said. “But when the mass exodus began, that’s when the whole ecosystem crumbled.”
Despite the inherent risks, Filipinos who successfully navigated the Axie Infinity craze have emerged as entrepreneurs, establishing crypto gaming guilds known as “guilds.” Teresa Pia, a former Axie player, has dedicated herself to operating a crypto gaming guild named Real Deal, which boasts a membership of 54,000 on Discord.
Pia views her online community as a virtual classroom where she imparts knowledge on crypto trading and investment, particularly to overseas Filipino women. With the recovery of the crypto market, many of these women have achieved financial independence, enabling them to return home to their families.
“The earnings they receive may seem modest, but when converted into pesos, they hold significant value,” Pia asserted.
Dela Cruz has opted to remain in the crypto industry as a video game streamer on Twitch. He currently leads one of the largest e-sports teams in the Philippines. In his hometown of Pampanga, many farmers have embraced Pixels as a supplementary income source, harvesting virtual crops for cryptocurrencies.
Luke Barwikowski, the American founder of Pixels, expressed gratitude for the invaluable insights provided by Filipino farmers on enhancing the game‘s realism.
“Our users generously share their crop schedules and watering routines,“ Barwikowski said.
The Philippine crypto industry, however, is not without its challenges. Filipino phishing scams are rampant on Discord and X, while “pig butchering“ scams, which involve targeting victims through deceptive messages, have also gained traction. During the heyday of Axie Infinity, reports emerged of some guild leaders exploiting vulnerable players by absorbing up to half of their earnings as membership fees.
Bon emphasizes the dual role he plays as a business owner and a protector for his guild members, providing them with essential resources and support. “They are like family to me,“ he said.
While cryptocurrency has been transformative for many Filipinos, some acknowledge that they are prepared to pursue alternative opportunities should the industry falter once more. Dela Cruz envisions a future managing more farms alongside his brothers, pursuing a life less reliant on cryptocurrencies.
“The fresh air, the sounds of the chickens... those are experiences you can‘t find online.“
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