The Philippine National Police Anti-Cybercrime Group (PNP ACG) has issued a warning alert about the dangers associated with cryptocurrency-based gaming schemes.
The Philippine authorities urged its citizens to maintain vigilance against the diverse tactics employed to extract funds from the gaming community.
The PNP ACG highlighted that these risks are particularly magnified when dealing with tokens of these crypto games as opposed to traditional cryptocurrencies. According to the authorities, this distinction arises from the fact that operators in the crypto gaming sphere often operate without the constraints of specific regulations, including anti-money laundering protocols, thus amplifying potential risks.
While explaining the dangers posed by cryptocurrency gaming schemes, the Philippine law enforcement team specifically highlighted the “play-to-earn” approach employed by Axie Infinity, a metaverse game built on the Ethereum blockchain.
According to the PNP ACG, participants seeking to enter Axie Infinity’s gameplay must invest a minimum of $300 to acquire three Axie characters. This mandatory investment of funds contrasts sharply with traditional gaming norms, where average user expenditures typically hover around $100.
The Philippine officials further emphasized the potential for token and NFT losses. They cautioned that this scenario may unfold if individuals attempt to transfer these assets to a non-compatible wallet or if users become trapped in fraudulent activities.
The PNP Anti-Cybercrime Group emphasized the risks associated with the unstable prices of these game tokens. The team stated:
“As well as malicious attacks, players can also lose money through volatility. Crypto game tokens are susceptible to price changes, just like non-gaming cryptocurrencies, but some games limit how often you can withdraw tokens.”
To address these challenges, the authorities advised citizens to conduct thorough research before investing in cryptocurrency projects and to remain cautious of potential scams, fraudulent individuals, and deceptive links. This advisory serves as a comprehensive effort to safeguard the gaming community from evolving threats within the dynamic landscape of cryptocurrencies.
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