The release of Pudgy Penguins’ Pengu Clash was heralded as a success for the Web3 gaming sector. A fun, “play-to-win” mini-game developed on the TON blockchain, creating yet another stride forward for NFTs. Except… the PENGU token sank almost 8% right out of the gate.

While analysts point to market volatility, I see something more troubling: Web3's broken promise to artists. Especially those from emerging markets.

The narrative is always the same: Web3 empowers creators! Direct connection to fans! Cut out the middleman! True ownership!

Who Truly Benefits From Web3?

Let's be real. How many other solo, independent Southeast Asian artists are now figuratively swimming in ETH due to the boom and bust of Web3 gaming? How many are even treading water?

Pengu Clash, with its short-sighted obsession with brand expansion at the expense of making money now, is symptomatic. It’s not about fostering great art, it’s about creating an empire and it starts with artists. It’s the Web2 model in Web3 cosplay.

I’ve interviewed scores of these factory workers turned artists in the Philippines, Indonesia, and Vietnam. They’ve invested their hearts, talents, and aspirations into Web3 projects only to find themselves with drained digital wallets and dashed dreams. They were lured in by the promise of decentralization, only to find themselves at the mercy of a different set of gatekeepers: venture capitalists, hyped-up NFT collections, and whales who control the markets.

Look at the PENGU token's performance. That’s because it’s driven by pure speculation and market sentiment, rather than the value of the art itself or a reflection of the artists that are involved. The focus is on tokenomics, not talent. Technical analysis calls this one on big oversold RSI and bearish MACD, but where’s the analysis on the human cost of that tech sell-off?

This change from “play-to-earn” to “play-to-win” is presented positively, as a new initiative that shifts away from unsustainable tokenomics. Is it really?

“Play-to-win” by its very nature advantages those who have the skills, time and resources to be competitive. What about the artists who are struggling to learn new technologies, build a following, and navigate the complex world of Web3, all while trying to make a living?

Is "Play-To-Win" Just Another Game?

It somewhat relates to the beginnings of photography. At first, it was available only to the rich since the expensive machinery and intricate production was beyond the reach of the average citizen. It took decades for the technology to democratize, to enter the hands of the average person. Are we setting ourselves up to make the same mistakes with Web3?

The Pengu Clash dip has to serve as a wake-up call. We have to get past the hype and begin creating a Web3 gaming ecosystem that actually uplifts emerging artists.

Take Bitcoin Hyper (HYPER), a Layer 2 solution like the Lightning Network that seeks to overcome some of Bitcoin’s limitations. And while HYPER is clearly all about scalability and transaction speed, why aren’t we at least as concerned about improving scalability and accessibility for artists?

With more than $1.38 million raised so far, the HYPER presale is already off to a great start. Now, just think if even 1% of that had been used to help onboard new artists into popping Web3 gaming.

I’m not arguing that Web3 gaming is bad in and of itself. I'm saying we need to do better. We need to hold ourselves accountable. We must advocate for a bolder, more equitable and inclusive system.

Time For A Real Web3 Revolution

Web3 holds great promise, but if we aren’t careful, it will become another shattered hope for the very artists that need it the most. Let’s realize a future where every voice is amplified, and every artist has the opportunity to make a living. Let’s ensure that Web3 truly becomes a revolution for all—not just the privileged.

This means:

  • Prioritizing artist support: Incubator programs, mentorship opportunities, and grants specifically targeted at artists from developing countries.
  • Focusing on community building: Creating spaces where artists can connect, collaborate, and learn from each other.
  • Exploring alternative monetization models: Moving beyond "play-to-earn" and "play-to-win" to models that reward creativity, collaboration, and community engagement.

Consider Bitcoin Hyper (HYPER), a Layer 2 solution aiming to address Bitcoin's limitations. While HYPER focuses on scalability and transaction speed, shouldn't we be equally focused on scalability and accessibility for artists?

The HYPER presale has raised over $1.38 million. Imagine if even a small fraction of that went towards supporting emerging artists in Web3 gaming.

I'm not saying Web3 gaming is inherently bad. I'm saying we need to do better. We need to hold ourselves accountable. We need to demand a more equitable and inclusive system.

Let's not let the promise of Web3 become another broken dream for the artists who deserve it most. Let's build a future where all voices can be heard, and all artists can thrive. Let's make Web3 a revolution for everyone, not just the few.

This isn't financial advice. It's a call to action.