In 2021, the crypto sphere felt the tremors of the play-to-earn (P2E) non-fungible token (NFT) craze that swooped old and new investors with the idea that earning cryptocurrencies can be much more fun. The thought of potentially raking huge earnings from simply playing online games enticed users, regardless if they are gamers or not.
However, the play-to-earn model seems to be losing its touch following the huge success of Sky Mavis’ Axie Infinity. However, this loss of momentum didn’t stop other projects from further developing the concept — integrating it into a more rewarding real-life activity without spending too much time and effort strategizing and battling in P2E games. Cue in move-to-earn (M2E) applications.
The Success Behind M2E NFT Gaming
M2E apps incentivize users for their physical, real-life activities, rewarding them with cryptocurrencies. Such platforms have gained traction from users, with examples such as STEPN and Sweatcoin enjoying success.
While P2E games earned their right to gain popularity, one cannot deny how easy it is to play M2E platforms — users simply earn by doing what most people already do. Meanwhile, the technology boosts your fitness and health goals.
Notably, GMT, the governance token of STEPN, practically lives in CoinMarketCap’s list of trending cryptocurrencies. It reached its highest peak so far at $4.11 on April 28.
Venture capitalists betting big on M2E is also one of the factors that drive the craze behind the fairly new model. New player Kikit, a Liberty Gaming-powered football M2E, is backed by multiple partners, including Synergia Capital, Maitri Capital, and Skylaunch.
According to Liberty Gaming, the project is expanding its global partnerships outside the crypto industry, beginning with a deal with the Indonesian football club Persib Bandung in February. Liberty and Kikit disclosed that the VC is “close” to getting a deal done with a Premier League giant.
Similar to any budding platform, the M2E is attracting thousands of users. However, with this growth comes the possibility of entry getting more expensive.
In the case of STEPN, users have to purchase virtual sneakers to start earning. These sneakers are represented by an NFT, which costs at least 1.6 SOL, or $70, at the time of writing. As these M2E apps grow, the price for entry into the M2E increases.
This spurred such apps to introduce the guild and scholarship programs. Guilds provide scholarships to players as a rewards-sharing model, where the guild acquires NFTs and rents them to new players. These players can use the platform and start earning without having to spend any money.
Numerous guilds have started forming left and right, with the likes of Kikit anticipating about 20% of its user base coming from rental accounts. Liberty Gaming said that they plan to issue an initial 100,000 accounts that will be distributed for rental.
There are around one million scholarship applicants globally, and we plan to satisfy this demand. Kikit will also bring scholar-specific gameplay features in addition to our account rental system.
Although the GameFi concept may prove unsustainable, relying heavily on hype, one cannot deny its tremendous potential to accumulate lots of earnings for users.
Kikit aims to promote healthier living through the gamification and monetization of exercise. The platform noted that its key differentiator is the mix of value drivers that blends personal, social, material, and financial incentives. The Kikit team believes this will boost user retention and engagement levels, putting their app in a position to secure long-term sustainability.
Experts have argued that gamers play to have fun and not earn. Furthermore, they posit that the attraction toward P2E mostly comes from less developed countries, where users play on such platforms for financial reasons. This limits the appeal of P2E to a wider audience. On the other hand, M2E is easily integrated into daily lives, with users rewarded without investing too much of their time.
Interestingly, Kikit has found a way to elevate the concept even further through mass adoption. Soon, it will launch different modes along with the football feature.
Being Creative; Onward Into the Future
Despite being in its nascent stage, the M2E sector is ripe for the taking. By combining exercise, earning, and the gamification of fitness apps, M2E can draw large numbers of users. In the future, more projects like Kikit, STEPN, and Sweatcoin will get introduced. They may have different services, but they would share the similar goal of making every drop of sweat worth the while.