Play to Earn Games Are Ponzi Schemes

Crypto fraud is not a new or unexceptional thing. This is because a lot of people are not that much aware of this technology. Most of them just want to get millions in return of a small investment. As a result, some scammers open their fake exchanges and claim to be a crypto trader. We already shared a related story in this article.

Recently, we are seeing a new trend in mobile games (mostly): Play to Earn. The hottest new trend in the cryptocurrency industry – GameFi – operates on a play-to-earn model. Earnings via games can be very effective. But not everyone is a fan of it.

TapTap’s CEO, Dash Huang, believes Play-to-Earn games are nothing more than Ponzi schemes. Blockchain is suitable for gambling games, and play-to-earn is more like Ponzi Schemes for gullible individual investors.

China Warns About Play-to-Earn Games

Beijing does not like cryptocurrency and anything related to it. Further validating this hawkish stance towards the industry, a Chinese state television issued a warning to citizens against participating in blockchain-driven, play-to-earn online simulation games like Farmers World.

China Central Television (CCTV) called these games “scams” after featuring reports of two intermediaries in Shaanxi and Fujian, letting Chinese citizens engage in play-to-earn games.

CCTV claimed that these games have low-budget webpage games and cheat players. It also went on to quote industry experts who compared the mechanism to that of a Ponzi scheme.

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