On a recent Tuesday night, approximately 20 individuals gathered in Joniel Bon’s new internet cafe located in Quezon City, a mere 10 miles from Manila. Positioned at computers sporting 34-inch curved monitors, the group embarked on playing video games such as Heroes of Mavia and Nifty Island, while tunes from Taylor Swift and Maroon 5 filled the room. Playing these games has the potential to become a full-time occupation, with some of Mr. Bon’s clients settling in for the evening with pizza slices to keep them energized. By accomplishing small, daily challenges, gamers are rewarded with cryptocurrency tokens, which are often converted to pesos, the Philippines’ currency, resulting in earnings approximately double the nation’s daily minimum wage of $11.
Mr. Bon, aged 40, had envisioned the lively environment at his own business after the volatile crash of cryptocurrencies two years ago, which had thwarted his aspirations for a prospering game collective at the time. “There was a point I had to say, ‘I believe in this.’ I had to hope,” stated Mr. Bon, a former information-technology professional. “We survived.”
Mr. Bon’s new internet cafe serves as evidence of the resurgence of crypto in the Philippines, a country with a longstanding history of crypto activities. As of this month, Bitcoin has reached a peak value, capping off a recovery from the financial downturn of 2022, and propelling other digital currencies like Ether aloft. Currently trading at around $68,000, Bitcoin has prompted the appearance of new crypto company billboards around Manila. Additionally, individuals have started reaping rewards from a cryptocurrency farming game named Pixels as a newfound source of income. Overseas Filipino workers, referred to as O.F.W.s, are returning to the Philippines to earn crypto as M.F.W.s, or metaverse Filipino workers.
In November and December, the value of crypto transactions in the Philippines surged by 70 percent compared to September and October, amounting to $7.3 billion, according to data from the research firm Chainalysis. The player base for Pixels in the Philippines skyrocketed to over 830,000 in March from 80,000 players in November, per the game’s developers. They noted that about 30 percent of the global crypto-earning video gamer base is located in the Philippines.
The resurgence of crypto has unsettled some Philippine officials. During a crypto conference in Manila in November, Kelvin Lee, a former commissioner at the country’s Securities and Exchange Commission, acknowledged that the government was grappling with how to regulate the technology amidst its burgeoning popularity. Reflecting on past frauds and scams associated with cryptocurrencies, Mr. Lee underscored the volatility of the tokens provided by crypto-earning games, suggesting the possibility of another boom-bust cycle. “We want a safe space to operate well,” he remarked, emphasizing the potential benefits of a robust crypto industry for the Philippines. The country, heavily reliant on outsourced customer-service and information-technology jobs, could stand to gain significantly. However, Mr. Lee highlighted the necessity for a well-regulated industry space. The Philippines’ central bank had previously announced plans to introduce its own digital currency within the next two years.
The pandemic lockdowns heightened crypto’s popularity in the Philippines. Despite over 40 percent of the population lacking bank accounts, the majority of Filipino households possess internet access, fostering the dissemination of crypto to rural locales. During the lockdowns, individuals engaged in the crypto-earning video game Axie Infinity, produced by Vietnamese firm Sky Mavis, where players combat Pokemon-like characters to earn Smooth Love Potion, a cryptocurrency.
At the apex of Axie’s fame in 2021, Smooth Love Potion was embraced as an alternate payment form to pesos by landlords, gas stations, and select restaurants in the Philippines. However, when crypto suffered a collapse a year later, numerous Filipinos lost their savings tied to Smooth Love Potion. The game’s characters, some of which players sold for thousands of dollars, depreciated in value significantly, rendering them effectively worthless. For those who profited from Axie, with some venturing into entrepreneurship and forming gaming collectives or “guilds,” success has followed. Teresa Pia, a former Axie player, transitioned to managing the crypto gaming guild Real Deal, boasting 54,000 members on Discord. She perceived her Discord channel as a teaching platform, guiding predominantly female Filipino overseas workers on crypto trading and investment. As crypto rebounds, many of these women are accruing substantial earnings, enabling them to return home to their families.
Ian Dela Cruz, a farmer situated in Pampanga, a province to the north of Manila and a former Axie player, transitioned to the crypto industry as a video game streamer on Twitch. He currently assumes leadership as the captain of one of the largest e-sports teams in the Philippines. In Pampanga, numerous farmers have turned to playing Pixels and harvesting virtual crops to earn additional crypto income.
Luke Barwikowski, the American founder of Pixels, acknowledged the significant input provided by Filipino farmers, who offered insights on enhancing the game’s realism. Despite its appeal, the crypto industry in the Philippines is rife with opportunists. Filipino phishing scams are widespread across online crypto communities on platforms like Discord. Moreover, “pig butchering,” involving scammers deceiving victims via deceptive texts and Facebook messages, is carried out frequently. Guild leaders during Axie’s golden era exploited vulnerable players by imposing hefty membership fees, resulting in players transferring up to half their earnings. Amidst these challenges, Mr. Bon viewed his role as that of a protector, providing resources and guidance to his guild members. “That’s family,” he maintained.
While crypto has proven beneficial to many Filipinos, some are prepared to explore alternative opportunities if the industry falters once more. Mr. Dela Cruz envisioned expanding his agricultural enterprises alongside his brothers, freeing himself from reliance on crypto for income. “The fresh air, the sounds of the chickens,” he mused. “You don’t get that online.”
