Virtual Currencies and Crypto: The Scandal of Manipulative Gaming Giants Erupts

Web3 is progressing, morphing like a caterpillar becoming a butterfly. However, the full revolution is not yet here, and the current transformations are sparking some controversy. In this context, seven video game giants are accused of manipulating consumers through the use of virtual currencies. Consumer protection associations have filed a complaint with the European Commission, demanding action against these deceptive practices that could impact the crypto industry.

The opacity of virtual currencies: a trap for gamers

Activision Blizzard, Ubisoft – which offers NFT Lapins Crétins on The SandBox, and other big names in gaming are accused of using a well-honed trick: the introduction of virtual currencies to encourage players to spend without being fully aware of it. Imagine this: you want to buy a stylish weapon or a fancy costume for your avatar, but, surprise, you first have to convert your euros into coins, gems, or other virtual currencies.

The problem? These conversions make the real cost of your purchases hard to grasp. Worse still, there is no way to convert these gems or coins back into euros once the purchase is made.

Result: players end up buying more virtual currency than necessary, without understanding how much real money they have spent.

According to UFC-Que Choisir, this opaque system deliberately biases consumers’ freedom of choice. This is where publishers, while hiding the real price of items, push players to open their wallets recklessly.

The weight of cryptos in the video game universe

The issue falls within a broader context where cryptos and virtual currencies are flooding into gaming. With the rise of Play-to-Earn, a new model where players can earn crypto while playing, the line between leisure and investment becomes blurred.

But beware, not all platforms play fair. While some, like SpaceCatch, honestly reward players who catch aliens and earn cryptos, others use dubious practices.

Did you know that 42% of PC games use virtual currencies, and on mobile, this figure reaches 81%? Consumers, especially the younger ones, are easy targets. Each month, they spend on average €40 on video games without always understanding the real value of the items they acquire.

To add to this confusion, the items offered are never displayed in euros.

• In 2020, in-game purchases generated €46 billion;
• 84% of young people aged 11 to 14 play video games in Europe;
• 3.6 million French players have already converted real money into virtual currency.

With such figures, publishers are not done monetizing the enthusiasm of players for virtual weapons or flashy skins.

More transparent and legal alternatives: what to do?

In response to these practices, consumer associations, supported by organizations such as UFC-Que Choisir and CLCV, are calling for reforms to regulate these virtual currencies. They are calling for greater transparency: it is urgent to display the prices of virtual items in real currency.

“Gamers should not need a calculator every time they want to make an informed decision“, says Agustin Reyna, from the European Bureau of Consumers’ Unions.

And what if Web3 and blockchain offered a fairer solution? Cryptos, while criticized in some cases, can also help players better manage their spending. Some projects show that Play-to-Earn game models where players actually earn cryptos are possible.

Rather than hiding the true cost of purchases, these alternatives propose that players earn currencies by actively participating in the game, while making transactions transparent.

Players can also turn to altcoins related to video games, offering new perspectives and fairer rewards. Here are some popular altcoins in this universe:

• Enjin Coin (ENJ);
• Decentraland (MANA);
• The Sandbox (SAND).

These currencies allow developers to create more open ecosystems focused on users, far from the opaque practices of traditional gaming giants.

Play-to-Earn is based on a simple principle: giving back to players a part of their earnings. SpaceCatch has understood this well, offering them the possibility to earn cryptos by catching aliens.