Feb 7, 2023 – Bondee, the latest social networking app, has come under fire for previous mentions of NFTs and a blockchain wallet in its privacy policy, which has since been removed. Popular among the youth of Southeast Asia, it has risen to the top of the download rankings. Backlash from current users stem from common misconceptions about blockchain technology, namely its perceived environmental impact and detriment of young, impressionable users. The largely negative reception towards crypto-gaming highlights the need for Web3 companies to educate consumers about this new technology.
Bondee Receives Backlash – What People Need to Know About Crypto-Gaming
Bondee is the latest social networking app that has taken the youth of Southeast Asia by storm. Launched by Singapore-based tech startup Metadream, the app has climbed the download rankings, sitting triumphantly at the number one spot in both the Apple App Store and Google Play Stores of Singapore, Malaysia, and Thailand.
The app allows users to interact with each other in a virtual space via customisable 3D-animated avatars. Its trendy design and similarity to popular games such as Animal Crossing or Club Penguin are only part of why commentators have dubbed Bondee a ‘next-gen social app’. Its ability to connect users through virtual activities seems to be a massive draw for its primarily Gen Z user base.
However, the social networking phenomenon landed itself in some hot water recently over allegations that the privacy of users’ financial data was breached. Metadream has since denied these allegations.
Metadream has declared that no financial information is currently collected upon the user’s download and registration. Bondee’s previous privacy policy contained a clause indicating its intention to integrate a blockchain wallet and NFTs. Since receiving backlash, however, the clause has been removed and the current privacy policy does not contain any mention of NFTs or cryptocurrency.
Bondee’s prior policy on crypto integration outlined how users would be able to create a public blockchain wallet where fiat currency could be exchanged for in-game currency (B-Beans), which could then be used to purchase NFT products within the app.
This sparked dissent and controversy amongst current Bondee users. Current users have expressed their unwillingness to support crypto mining due to its perceived negative environmental impact. A Tweet that has received over 1,000 views states: “the reason why I don’t do Bondee: NFTs [are] not safe for the environment”. Netizens also voiced their intention to uninstall Bondee once the blockchain integration would be mobilized.
Amidst the maelstrom of users withdrawing their support for the app, there were also many who were confused. One Twitter user asks: “can someone please educate me about this whole Bondee NFT thing going on because I was having fun until [it] got complicated and I see that the app is related to NFT”.
So, what does a NFT and blockchain wallet mean, actually? And why are so many people against it?
Why gaming platforms are looking to integrate blockchain technology
Melding virtual currency with real-life monetary value is not a new concept. Millennials weighing in on Bondee have commented how the app’s previous plans for NFT integration is reminiscent of Habbo Hotel, a popular early 2000s massively multiplayer online (MMO) game where users paid fiat currency for in-game tokens. Habbo Hotel infamously became known as a hotbed for financial crime; authorities investigated hundreds of reported cases of virtual theft, where digital assets such as virtual furniture worth thousands of euros had been stolen. This arguably cast an ominous shadow over future endeavors to integrate virtual token systems with real-world currency. User reactions to another popular MMO Ni No Kuni’s integration of NFTs have been largely negative: the game had been ‘ruined’, according to multiple reviews.
In-game assets such as cosmetic items, weapons, or furniture have always been sold on a gray market. A quick search on online secondhand marketplaces will churn up a plethora of gamers selling in-game assets for sale in fiat currency. Using traditional payment systems, many of these transactions carry the risk of fraud on both ends. Trading on third-party marketplaces also means that the game platforms do not see the profits from these transactions. Games integrating blockchain technology offer a solution to curb these issues of their predecessors.
Crypto-games such as Meta Masters Guild and Fight Out – have been seen as the Web3 evolution of play to earn (P2E) gaming. This new wave of internet innovation is characterized by its incorporation of blockchain technologies and decentralized technology. This new technology uses a network of computers (nodes) that contain the shared history of every crypto transaction ever made. Each transaction submitted to this collection of data is subject to a validity check by the nodes. This affords the user the ability to complete secure, verified payments online without the need for a third party such as banks or credit card companies. With this, the digital assets are completely and securely owned by the user. Game developers also benefit from blockchain technology by keeping the trading of digital assets within the game platform. From this, the platforms would be able to earn revenue from the resale of in-game digital assets.
Despite theoretically benefitting both the game developers and users, crypto-gaming endeavors have consistently been met with criticism.
Cryptocurrency and the Environment
In a tweet that has garnered over 11,000 views, a Twitter user warns their followers about Bondee’s previous plans for blockchain wallet integration: “It’s not safe! They support NFT and aren’t good for our environment […] the party is kinda canceled.”
The narrative that crypto and NFTs are inherently detrimental to the environment is largely due to the energy-intensive nature of Bitcoin and certain other blockchain technologies, which are likely to contribute to an increase in global carbon emissions. The energy demand of the Bitcoin blockchain alone is estimated to be around 110 Terawatt Hours annually, comparable to the energy consumption of countries such as Malaysia and Sweden. However, this does not mean that all blockchain applications are detrimental to the environment; not all blockchains are created equal.
All blockchains utilize a consensus mechanism in order to maintain trustworthy records across many computers without the need of a centralized book-keeper. This system ensures that all the computers on a decentralized network are in sync and validates the transactions by checking digital signatures. The most well-known consensus system is proof-of-work (PoW), where users must solve complex problems before transactions can be added to the network. For this, high-powered computers generate random numbers on a trial and error basis; energy consumption for this can total up to more than that of a country with a large population.
More recently and more commonly, Web3 companies are using a more environmentally friendly alternative to the proof-of-work mechanism: proof-of-stake (PoS). This consensus mechanism requires users to have their transactions validated by a random validator chosen by a weighted algorithm – no energy-draining supercomputers required.
If Bondee had followed through on its plans to integrate blockchain technology, it would have more than likely used the latter consensus mechanism, which would not have caused the catastrophic environmental destruction that netizens had been anxious about.
Are companies like Metadream preying on young users for financial gain?
Opponents of Bondee’s previous plans for blockchain integration have also cited concerns over the questionable ethics of integrating real-world money into a game aimed at a young, impressionable demographic. This tweet with almost 8,000 likes accuses Bondee of “taking advantage of the millennial/Gen Z dream of having affordable housing and just being able to dress up all day for them to be a whole NFT company”.
It is unsurprising that the Singaporean startup would make a clever foray into crypto-gaming. Despite the crypto winter in Europe, Singapore remains a powerhouse in fintech innovation. A gateway into digitizing the Asian market, Singapore offers decentralized finance (DeFi) companies the promise of growth and development, especially with government backing in the form of policies and incentive programs. With Bondee, Metadream taps into a promising crypto market – the youth of Singapore. A report from City A.M. in the last quarter of 2022 shows that 62% of Singaporean crypto investors were under 35. More recently, a 2023 survey by GoBankingRates Best Banks showed that more than a quarter of Gen Z respondents believe it is critical for their bank to have a cryptocurrency exchange or platform.
Bondee’s cute, fun, gameplay lures in young millennials and Gen Z users. This move addresses a critical point for Web3 companies looking to tap into the NFT market – ensuring consumers see actual value in the digital tokens. Critics of Porsche’s recent failed NFT collection cited the lack of perceived utility and value behind the tokens as a key player in the mint’s downfall. Through Bondee’s gameplay, Metadream immerses users in the metaverse (a virtual-reality space). Doing so allows users to develop a sense of value when it comes to digital assets and virtual belongings, which is imperative to the success of a NFT launch. For this reason, it makes sense why the company specifically targets younger, more impressionable users. Not only do the youth already have a persistent interest in crypto, but they are more likely to be influenced to develop a sense of value around digital assets.
The Future of Blockchain Gaming
Whether or not Metadream will continue their blockchain integration efforts remains unclear, but one thing is apparent: there is a lack of clear, reliable information about this burgeoning technology. The younger generation, especially, lack education about the possibilities blockchain technology affords. Misinformation and misrepresentation in the sensationalist age of social media has made navigating this new technology all the more confusing and frustrating; it is understandable that Gen Z and millennial users feel taken advantage of.
Companies need to improve communications with their user base. Change needs to happen gradually – current users have to be introduced to and become familiar with blockchain technology. The idea behind Bondee’s immersive gameplay as a method of warming users up to DeFi gaming may have been a good one. However, the mention of crypto being only in the fine print left a sour taste in users’ mouths – it perpetuates the stigma of crypto companies being part of a nefarious, predatory scheme.
Undoubtedly an ambitious and innovative move in the evolution of DeFi gaming, the success of Web3 companies’ attempts to get youth onboard the crypto and NFT train remains to be seen.