Is GameFi Gaining Popularity in the Philippines?
GameFi has been routinely criticized as a system that only enhances microtransactions and vaguely resembles gambling to many. However, attempts to provide a real gaming experience are still being developed around the world.
Yield Guild Games (YGG) is a Philippines-based web3 gaming startup that is building a guild system for players to explore communities within blockchain-based games that could improve e-sports.
Funding from a16z
YGG first gained recognition when they were funded by Andreessen Horowitz (a16z) and a group of venture capitalists that raised nearly $14 million for the project through a token sale in February 2023. The project’s team plans to use the funding to help develop its decentralized gaming network and global economy for gamers within its community.
More specifically, the project plans to develop a guild system that will allow gamers to interact with each other, both inside and outside of specific blockchain-based games. This added level of community is common in many traditional video games but takes on a new layer of ownership for players who can use tokens earned in-game as a currency that can be exchanged for fiat.
Web3 E-sports potential
Moreover, the team wants to spur the development of e-sports which could become a major beneficiary of GameFi (as discussed previously on BCCN3). In the last decade, the Philippines has seen a boom in e-sports gaming from mobile games. Titles such as Mobile Legends: Bang Bang (MLBB) are highly popular in the country with teams from the Philippines winning multiple international titles.
YGG’s interest in e-sports could capitalize on this new trend, allowing tournament prizes to grow significantly for players who already put immense time and effort into mastering the game. While MLBB isn’t specifically addressed by the team, it does show that e-sports has a growing interest in the country and that an equally enjoyable blockchain variety of the game could lead to massive success.
Is GameFi Being Done Right?
It seems that YGG’s approach to GameFi might be an appropriate one compared to other blockchain-based games which tend to amount to nothing more than generic time trials that cost real money to enjoy, and it shows with a16z’s involvement.
The teams' interest in e-sports and guilds shows a divergence from the initial system that many expected with GameFi where one would play a game and earn crypto through their actions. Instead, they are placing an emphasis on competitive performance and community which could dispel some of the original issues such as additional microtransactions that most gamers are concerned about.
Philippines and Crypto
Unfortunately, the Philippines is not the strongest supporter of cryptocurrency, and officials from the country have repeatedly gone on record to say that cryptocurrency and NFTs are based on Greater Fool Theory, à la Bill Gates.
Just recently, the Philippines Securities and Exchange Commission pushed for stronger regulations inside the country regarding the web3 industry, wishing to weed out criminals and unregistered exchanges which could be supporting illegal activity in the country.
While this position on cryptocurrency has become stronger across the world since 2022’s string of losses, YGG appears to be doing everything it can to avoid any mistakes with the assistance they’re receiving from a16z who can hopefully guide them down the proper path toward success in the Philippines.
