cryptocurrencies: Crypto-performers: The rise and stabilization of perform-to-earn currencies

Synopsis

The market for perform-to-earn cryptocurrencies is rapidly growing, with numerous projects entering the space in recent years. According to a report by Frost & Sullivan, the global market for perform-to-earn cryptocurrencies is expected to reach $31.9 billion by 2025, growing at a compound annual growth rate of 33.5% from 2020 to 2025.

cryptocurrencies: Crypto-performers: The rise and stabilization of perform-to-earn currencies  0 Perform-to-earn cryptocurrencies, also known as proof-of-activity or proof-of-engagement coins, are digital assets that reward users for completing specific tasks or participating in certain activities. These tasks can range from completing surveys and testing new products to referring friends to a platform or participating in online communities. Perform-to-earn cryptocurrencies incentivize user engagement and build loyalty within an ecosystem.

The market for perform-to-earn cryptocurrencies is rapidly growing, with numerous projects entering the space in recent years. According to a report by Frost & Sullivan, the global market for perform-to-earn cryptocurrencies is expected to reach $31.9 billion by 2025, growing at a compound annual growth rate of 33.5% from 2020 to 2025.

India is another region with significant potential for the adoption of perform-to-earn cryptocurrencies. The country has a large and growing population of internet users, with over 850 million people online as of 2021 (We Are Social, 2021). India is also home to many unbanked or underserved individuals who may be attracted to the financial inclusion and accessibility of perform-to-earn cryptocurrencies (World Bank, 2021).

In addition, India has an intense gaming and digital entertainment culture, creating a natural fit for perform-to-earn cryptocurrencies that reward users for participating in online activities. According to a report by KPMG, the Indian gaming market is expected to reach $1.1 billion by 2021, with mobile gaming making up most of the market (KPMG, 2020). This presents a significant opportunity for perform-to-earn cryptocurrencies integrated into gaming and entertainment platforms.

Did you Know?

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View Details »One example of a perform-to-earn cryptocurrency gaining traction in India is Swirl Coin (SWRL). The coin rewards users for participating in various activities, including completing surveys, testing new products, and referring friends to the platform. As of December 2021, Swirl had over 5 million users in India, with a strong presence in major cities such as Mumbai and Bangalore (Swirl, 2021).

In addition to gaming and task-based platforms, perform-to-earn cryptocurrencies can potentially be used to reward everyday user actions such as shopping (how cool is that!). One example is FlipkartCoin, the official coin of the Flipkart e-commerce platform. Users can earn FlipkartCoin by participating in activities such as making purchases on the platform, writing reviews, and referring friends. As of December 2021, Flipkart had over 100 million users in India, with a strong presence in major cities such as Delhi and Mumbai (Flipkart, 2021). Another such example of potential use is ShopeeCoin, the official coin of the Shopee e-commerce platform. Users can earn ShopeeCoin by participating in activities such as making purchases on the platform, writing reviews, and referring friends. As of December 2021, Shopee had over 200 million users in Southeast Asia, with a strong presence in Indonesia, Thailand, and Vietnam (Shopee, 2021). We can only imagine the extent of mainstream adoption of cryptocurrencies once e-commerce sites start doling them out as rewards. An upcoming crypto rewards program is being created by GenBlock and shall enable businesses to reward user actions with cryptocurrencies.

Overall, the market for perform-to-earn cryptocurrencies in India and extended to South East Asia is ripe for growth, with numerous opportunities for adoption across various industries. As more and more consumers in the region become familiar with the concept of earning rewards for their online activities, the adoption of perform-to-earn cryptocurrencies will likely continue to grow.

One potential challenge for adopting perform-to-earn cryptocurrencies in India is the lack of awareness and understanding of the technology among some population segments. According to a survey conducted by the Reserve Bank of India, only 7% of the Indian population had a basic understanding of cryptocurrencies as of 2021 (Reserve Bank of India, 2021). This highlights the need for education and outreach efforts to help increase awareness and understanding of cryptocurrencies in the country.

Despite this challenge, the market opportunity for perform-to-earn cryptocurrencies in India is significant, with a large and growing population of internet users and a strong demand for digital entertainment and financial services. As the technology continues to mature and more projects enter the space, we will likely see continued growth and adoption of perform-to-earn cryptocurrencies in the country.

(The author, Samrat Kishor, is Tech Strategy Consultant & Entrepreneur, Golden Next Ventures)

(Disclaimer: The opinions expressed in this column are that of the writer. The facts and opinions expressed here do not reflect the views of www.economictimes.com.)cryptocurrencies: Crypto-performers: The rise and stabilization of perform-to-earn currencies  1cryptocurrencies: Crypto-performers: The rise and stabilization of perform-to-earn currencies  2Sunday, 08 Jan, 2023Experience Your Economic Times Newspaper, The Digital Way!Read Complete Print Edition »

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    Updated: 01/08/2023 — 01:00