- Crypto gaming guilds are raising millions in oversubscribed fundraising rounds as play-to-earn games boom in popularity.
- Axie Infinity, the leading in play-to-earn, has recently reached 1 million daily active users.
- Axie earned more than $340 million in revenue in the month of August alone.
Play-to-earn games are bursting in popularity, with Axie Infinity taking the lead. Such games not only allow players to enjoy their time, but also enable them to earn some money in the process — sometimes enough to make for a living.
The Meteoric Rise of Axie Infinity
Axie has revolutionized the way people used to play games. While the ultimate aim of playing has always been to have fun, Axie has offered the opportunity to earn money, too.
In plain language, users strategically battle Axie Infinity’s colorful, pokemon-like characters, called Axies, against each other to win two kinds of digital assets. Smooth Love Potions (SLPs) are awarded to the winner of P2P battles, while Axie Infinity Shards (AXS) tokens can be earned by playing tournaments or selling characters. Both of these tokens are cashable, just like any other digital asset.
What really stands out about the game is its meteoric rise. Axie had around 30k daily active users as of April. However, that figure increased to a staggering 1 million by August. The game has also been recording head-scratching revenue.
While Axie’s revenue was just around $2 million in January, the game raked in over $120 million in July, boosting its revenue by over 6,000%. August also saw Axie garnering eye-popping revenue, as the game earned more than $340 million.
What are Play-to-Earn Guilds?
For playing Axie Infinity, players need to initially purchase at least 3 Axies — which are used to battle against other players. However, depending on the market, the price for these Axies can be expensive.
As of now, the cheapest Axie available on the market is around $200. Bearing in mind that the majority of Axie players are from developing countries, this is quite expensive. This is where play-to-earn guilds come in.
Guilds lend out characters to players, and in return, ask for a portion of their earnings. This is a win-win situation. Lenders earn money by lending in-game assets to other players, while financially weak players get the chance to play the game without any investment.
Play-to-Earn Guilds Attract Big Sums
Play-to-earn guilds, companies that offer scholarships by providing expensive in-game assets to players, are attracting big investments from VCs.
Yield Guild Games, a Philippine play-to-earn gaming guild that offers Axie sponsorships, raised around $12.5 million in late July. Interestingly, in an oversubscribed seed funding round, the company raised the money in just 31 seconds, leaving a lot of interested users disappointed.
More recently, on September 8, Crypto Gaming United, a startup trying to build a large community of NFT-focused play-to-earn gamers, managed to raise $5 million. Sergei Sergienko, CEO at Chrono.tech, who also co-led the round, said:
The opportunity for wealth creation in the NFT space is no longer limited to those with the means, such as sports celebrities. At Crypto Gaming United, we are overcoming the cost barrier required for admission to play, thereby allowing players to generate income through their gaming exploits.