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 activities can range from completing surveys and testing new products to referring friends to a platform or participating in online communities. Perform-to-earn cryptocurrencies drive user engagement and build loyalty within an ecosystem.
The perform-to-earn cryptocurrency market is growing rapidly, with several projects entering the space in recent years. According to a report by Frost & Sullivan, the global perform-to-earn cryptocurrency market 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 performing cryptocurrencies. The country has a large and growing population of internet users, with over 850 million people online in 2021 (We Are Social, 2021). India is also home to many unbanked or disadvantaged people who may be attracted by the financial inclusion and affordability of performing cryptocurrencies (World Bank, 2021).
Additionally, India has an intense digital gaming and entertainment culture, creating a natural fit for performing cryptocurrencies that reward users for engaging in online activities. According to a report by KPMG, the Indian gaming market is projected to reach $1.1 billion by 2021, with mobile gaming making up the majority of the market (KPMG, 2020). This presents a significant opportunity for performing cryptocurrencies integrated into gaming and entertainment platforms.
An 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 like Mumbai and Bangalore (Swirl, 2021).
In addition to gaming and asset-based platforms, performing cryptocurrencies can potentially be used to reward users’ daily actions such as shopping (how cool!). An example is FlipkartCoin, the official coin of the Flipkart e-commerce platform. Users can earn FlipkartCoins by participating in activities such as shopping on the platform, writing reviews, and inviting friends. As of December 2021, Flipkart had over 100 million users in India, with a strong presence in major cities like Delhi and Mumbai (Flipkart, 2021). Another example of potential use is ShopeeCoin, the official currency of the Shopee e-commerce platform. Users can earn ShopeeCoins by participating in activities such as shopping on the platform, writing reviews, and inviting 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 distributing them as rewards. An upcoming crypto rewards program has been created by GenBlock and will allow companies to reward user actions with cryptocurrencies.
Overall, the perform-to-earn cryptocurrency market in India and across Southeast Asia is ripe for growth, with numerous opportunities for adoption across various industries. As 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. A potential challenge to the adoption of perform-to-earn cryptocurrencies in India is the lack of awareness and understanding of the technology among some segments of the population. According to a survey conducted by the Reserve Bank of India, only 7% of the Indian population had a basic understanding of cryptocurrencies in 2021 (Reserve, 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 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 performing cryptocurrencies in the country.
(The author, Samrat Kishor, is a technology strategy consultant and entrepreneur, Golden Next Ventures)