Chinese state television warns against blockchain-based, play-to-earn games as popularity surges
- The CCTV reports said that pay-to-play blockchain games should be treated with caution, and that many are a scam
- Play-to-earn games have become one of the hottest tech trends this year, with developers seeing their valuations mushroom
Chinese state television has warned citizens against taking part in blockchain-based, play-to-earn online games such as Farmers World, in the latest sign of Beijing’s aversion to anything cryptocurrency-related.
China Central Television (CCTV) fired warning shots in two reports over games that encourage people to play in order to earn cryptocurrencies, depicting them as scams. The environment for cryptocurrencies in China turned sour after Beijing banned cryptocurrency trading and mining in the country, viewing the industry as a threat to financial stability.
The CCTV reports put the spotlight on two intermediaries in the northwestern province of Shaanxi and the southeastern province Fujian, which help Chinese citizens to participate in play-to-earn games. Both operators said they can provide services to help users access a game called Farmers World, offering players the chance to earn monthly returns of more than 10,000 yuan (US$1,570). CCTV said the offers were a scam.
Play-to-earn games have become one of the hottest tech trends this year, with multiple blockchain game developers seeing their valuations mushroom to billions of dollars in the span of a few months. However, such games have come under increasing scrutiny due to their surging popularity.
CCTV alleged that some of these games are simply low-budget webpage games, which cheat players. CCTV quoted experts who said some of these games allowed older players to profit simply because new players have to pay entry fees, not unlike Ponzi schemes.
In one report, a CCTV reporter visited a company called Renren Liang Metaverse Research Center in Fujian, where a company director said that a player of Farmers World could be expected to earn a 100 per cent return between 22 and 40 days after buying an an-game item, which can cost tens of thousands of dollars.
But during this process, the player would have to pay a 6,000 yuan service fee to the company, and also allow the company to take 20 per cent of returns.
