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South Korea is witnessing a significant surge in the ‘X-to-Earn’ model, a concept that rewards users with cryptocurrency for engaging in various activities. This trend, initially prominent in play-to-earn games, has now expanded into the realms of fitness and K-pop fandoms, underscoring a broader shift in how digital interactions are monetized and valued.
A notable example is the ‘Move-to-Earn’ (M2E) model, which encourages physical activity. Users, equipped with NFT sneakers, earn crypto based on the distance they travel and completed quests. This model has gained traction in Korea, with platforms like STEPN, Snkrz, and SuperWalk leading the charge. Snkrz is particularly noteworthy, with its user base expanding to Japan and reaching around 100,000 users on Discord. Similarly, SuperWalk’s open beta attracted over 30,000 users, demonstrating the growing interest in such platforms.
In the M2E model, apps use GPS technology to record user activities, rewarding them based on metrics like steps taken, distance covered, and calories burned. The key to success for these platforms lies in creating added value from their digital assets, as issuing crypto rewards is a significant marketing expense. Potential strategies include selling user exercise data to insurance companies or partnering with offline channels to drive foot traffic to specific locations, like new shopping malls.
Another emerging model is ‘Fan-to-Earn’ (F2E), which allows fans to create and trade digital content featuring artists. HYBE, the agency behind global sensations like BTS, Justin Bieber, and Ariana Grande, has entered this space with a joint NFT venture aimed at enabling fans to monetize their engagement with favorite artists.
Backed by major game and digital companies, these X-to-Earn services are not just a fad but a testament to the evolving landscape of cryptocurrency and blockchain technology in the real world. Companies like Wemade and Naver Z are investing heavily in these platforms, recognizing their potential to integrate cryptocurrencies into the everyday economy. However, the success and sustainability of these models hinge on clear legal and political guidelines, emphasizing the need for a well-defined regulatory framework in the crypto industry.