What is Move-to-Earn?
With projects such as Genopets and STEPN, blockchain games based on move-to-earn have been emerging in recent months. These games combine elements of GameFi and fitness apps to reward users who exercise.
The “FitnessFi” segment of the third generation Internet (Web3) is rapidly growing. It allows users to manage and monetize personal data.
Gamification of exercise isn’t new. Games like Pokemon Go or Wii Sports are built on players moving. However, developers can run a move-to-earn cryptocurrency game on a blockchain to allow them to include cryptocurrencies and other non-fungible tokens as financial rewards.
The move-to-earn idea is now based on crypto. Players can earn in-game currency that they can exchange for real-world fiat currency. This provides tangible rewards for players’ participation, rather than just paying for a game.
What is the difference between play to earn and move to earn?
Play-to-earn games (P2E), reward players for playing their games, including winning battles and advancing to higher levels. Apps that move-to-earn track players’ movements and reward them for their physical activity automatically use sensors on the player’s smartphone.
Some M2E games can be played for free, while others require that the user purchase an NFT from a marketplace. NFTs are more expensive as the games become more popular. This can lead to a large upfront investment that can make it difficult for the user to start earning.
The floor price of an NFT in the STEPN Move-to-Earn app, which was $133 at launch, has risen to SOL1 in March (worth $133 by April 4th), and now is more than SOL8 (1,064 as of April 4th).
The M2E concept is designed to expand the benefits of blockchain-based rewards beyond gaming to promote healthy lifestyles. This is in line with the rise of employer wellness programs and fitness trackers that offer incentives for employees to exercise. M2E based on fitness can lower health insurance premiums, and decrease staff absences due to illness. This allows M2E applications to reach a wider audience than P2E.
Top move to-earn projects
STEPN, Genopets, and VIRTUAL are some of the first projects to use the move-to earn model. They have been in operation since late 2021.
Let’s look at the most common move-to-earn tokens, STEPN and Genopets.
August 2021 was the start of STEPN development on the Solana Blockchain. In August and October, the developers took part in the Solana Ignition Hackathon. They then began private beta testing the app in November. December saw the public beta launch.
In January, STEPN received seed-round funding from Sequoia Capital. Folies Ventures and Alameda Research.
The STEPN app uses NFT sneakers (move-to-earn NFT) to track players’ movements outdoors based on their mobile devices’ GPS signals. Green Satoshi Token, (GST), is the in-game utility token. Green Metaverse Token (GMT) acts as the governance token to allow players to participate in the development of the project.
Since it was launched on Binance’s exchange on March 9, GMT prices have soared to as high as 1,925%. They traded at a high point of $3.11 on April 1st.
Genopets is an online role-playing game that incorporates elements from the Tamagotchi digital pet, Pokemon Go battle games, and fitness and social incentives. To determine their progress through the in-game world, the game tracks a player’s actual-world activity using data from their wearable or mobile device.
Genopets, NFT virtual pets, become more valuable when players customize and upgrade them as they progress through the Genovese. To unlock new features and abilities in-game, players can track the steps they take.
GENE is the game’s governance and staking to the token. It is used to fund in-game NFTs as well as to give holders access and control over the game’s development. GENE’s initial price of $13.13 was in November. It then rose 188% to its current price of $5.31 on February 24th, as the cryptocurrency markets crashed heading into 2022. The markets turned higher in March and the GENE price rebounded. It traded at $22.79 on April 2. The coin was trading at $14.46 as of April 4th.
WIRTTUAL is a platform for virtual fitness events that has been in development since 2019. It was launched in April 2020. Event organizers in Thailand were attracted to the app by companies such as Mitsubishi Electric Thailand and Suntory.
WIRTUAL launched version 2.0 in the first quarter of 2022. It includes cryptocurrency, NFT avatars, and a tracking system that can be connected to smartwatches like Garmin, Fitbit, Strava, and Garmin. You can earn rewards by tracking your activity and sending it in. Challenges include running, swimming, dancing, and working out.
NFT avatar characters represent users. Users can update their avatars to unlock special features and limited-edition clothing that are exclusive to them. For-profit, avatar owners can sell them on the NFT Marketplace.
After a launch auction held on March 15, the WIRTUAL cryptocurrency was launched on PancakeSwap’s decentralized exchange. WIRTUAL will distribute 55,555.55 coins to users who submit results based on their activity each year.
By default, new users get WIRTUAL0.1 per day. As they progress through the seven levels of holder status, they will be eligible for more coins. They can submit more than one submission per day using the virtual clothes they have on their NFTs and get higher maximum rewards.
WIRTUAL’s token-launch auction price was $0.1572. It then soared to $1.06 the day after it was listed, an increase of 5744%. On March 22nd, the price fell to $0.2858. However, it has since recovered and traded at a record $1.57. M2E apps are still in the early stages of development so their long-term potential as investment assets is unknown. The sector may not be popularized after the initial hype. Market attention will shift to another trend and coins will drop in value.