What are play-to-earn games and why does South Korea want to limit them in the App Store and Google Play Store?

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what are play to earn games and why does south korea want.jpeg
what are play to earn games and why does south korea want.jpeg
You may have come across the term play-to-earn on occasion. or P2E. These are titles that reward players with cryptocurrencies, virtual money that can then be taken to the real world and to which South Korea now wants to put a brake on both the App Store and Google Play.

There are well-known titles of this type such as Axie Infinity and The Sandbox. The problem is that they are becoming more frequent and require an economic investment from the start as it is necessary to acquire components such as non-fungible tokens (NFT) to be able to play and then obtain rewards.

The risk of paying to play

Nft

Play-to-earn games are blockchain titles that make use of cryptocurrencies both to play, acquiring characters or accessories, and as a reward. And at this point they should not be confused with pay-to-win games.

P2E games are based on cryptocurrencies. Players acquire assets or tokens (NFTs) redeemable for in-game services and then trade with them on secondary markets. They get paid for playing, something that until now was almost exclusive to professional eSports players. In fact, we can find specific cases like that of Town Star, with important prizes.

These titles can become a source of income for many usersHence, how attractive they can be and the reason for their great growth. Titles that allow players to earn NFTs and cryptocurrencies that they can then transfer to virtual wallets and real money. But they also have risks.

And it is that as they quote in Beincrypto, the possibility of making money can also have its risks if aspects such as transaction fees are not monitored or some risks related to value and liquidity are taken into account. In this sense, they cite as an example the MMORPG MIR4, which “had a recent problem with its token in the game” Draco “losing 50% of value”.

In addition, it is necessary to take into account the revaluation or fall in the value of cryptocurrencies. Just as at the time the price of Bitcoin, Etherum has risen … these have also had falls and this affects the tokens of video games.

Nft

And these are the reasons why in South Korea they want to put a limit on it. In the Asian country, it is fighting so that the games generate more than one amount of money in the form of benefits for the players to grow in the application stores. Through the Game Management Committee (GMC), registered within the Ministry of Culture, Sports and Tourism, the South Korean government, the two large platforms have been requested that block any game that requires in-app purchases to play.

So far the age rating system and the lack of it in some titles It was the wall that some titles were running into to lose their place in the iOS and Android app store.

A case that recalls, saving the distances, the reward boxes in video games that have been regulated in order to avoid gambling addiction in minors. Now the P2E are in the objective and it will be necessary to see how they grow (or not) and how they attract the players.