Crypto Gaming Rewards Users with Tokens but Carries Risks of Trading and Speculation
By Adelaide Miller, ABC News Business Reporter
Saturday, 29 November 2025
Cryptocurrency is no longer confined to tech enthusiasts but is increasingly entering mainstream culture — from children to young adults. This shift was on full display at Aus Crypto Con, touted as the largest crypto event in the southern hemisphere, which recently drew thousands of attendees including families and university students.
Crypto Moves Beyond Finance to Entertainment
One standout at the event was Aavegotchi, a platform combining gaming and cryptocurrency by transforming digital ghosts into tradable non-fungible tokens (NFTs). Gamers “dress up” their Aavegotchis with various accessories and participate in games, earning cryptocurrency tokens (traded under the symbol GHST) whose value fluctuates based on gameplay and market conditions. As of late November, a GHST token was valued at approximately 44 cents, though such prices can quickly change.
According to Aavegotchi team members Thalita Moreira and Beatriz Martins-Costa, this model transforms gaming from pure entertainment into a purposeful activity where players not only enjoy the experience but also learn about future financial tools and earn actual assets. Moreira observed, “Today you see so many kids addicted to games … they stay on a computer for hours and hours, but they are just playing. At least with Aavegotchi you’re not just playing, you’re understanding the future.” Martins-Costa added, “You’re having fun, while you’re making money.”
Growing Use by Younger Generations Prompts Regulatory Concerns
At the conference, Ignacio Aguirre Franco, chief marketing officer of crypto trading platform Bitget, predicted that a new generation might open crypto exchange accounts before bank accounts, reflecting the rapid normalization of cryptocurrency in everyday life.
However, the rise of crypto gaming and token use among young people raises concerns about exposure to financial risk, particularly in unsupervised environments. While Aavegotchi has no official age restriction, a company spokesperson emphasized their recommendation that users be at least 18 years old to fully engage in token-earning activities and maintain personal cryptocurrency wallets, which they do not permit for minors.
Peter O’Neill from the University of New South Wales’ School of Banking and Finance highlighted that gamified crypto platforms have existed for almost a decade, sometimes blurring the lines between entertainment and speculation. He gave the example of Pudgy Penguins, a crypto-related game where players may unknowingly become involved in crypto markets and potentially increase their financial exposure as their engagement grows.
Regulation Is Catching Up
Australia’s government is starting to enforce tighter regulation over digital assets. New legislation introduced by the Albanese administration this week requires digital asset and tokenized custody platforms to hold Australian Financial Services Licences. Financial Services Minister Daniel Mulino stressed the need for oversight following overseas crypto collapse events that exposed gaps in consumer protections.
“Currently, businesses can hold unlimited client digital assets without financial law safeguards. Recent collapses overseas have shown the consequences of inadequate oversight,” Mulino said. The bill aims to establish clear, enforceable rules for businesses managing digital assets on behalf of consumers.
Market Volatility Highlights Risks
The crypto market remains highly volatile. Bitcoin alone has lost about a quarter of its value in the past month — its biggest monthly drop since June 2022, according to Bloomberg data. This volatility reinforces experts’ warnings about the dangers of speculative trading.
Dr. O’Neill warned that many newly created “meme coins” lack financial or technological foundations and serve little purpose besides speculation, essentially amounting to gambling. “There’s even a website that gamifies speculation… which is pretty shocking," he commented. “I wouldn’t be happy if I was just speculating on meme coins, because it’s essentially just a form of gambling.”
Aavegotchi representatives counter that their platform differs from gambling by rewarding strategic choices, creativity, and collaboration, though they acknowledge risks tied to play-to-earn mechanics and stress the importance of responsible engagement.
Crypto Use Expands Beyond Gaming
Innovative uses of cryptocurrencies continue to emerge. Jason Krishnan, founder of Shiba Wings — Australia’s first crypto diner — enables customers to pay for food and drinks with crypto tokens and has developed a community-owned franchise model with its own token. Krishnan boasts 1.5 million token holders and is expanding with another restaurant planned in Melbourne.
Tools to Simplify Trading Also Bring Risks
Bitget offers an AI trading assistant called GetAgent, which automates trades based on personalized strategies—making crypto trading more accessible. However, the Australian Securities and Investments Commission (ASIC) recently warned investors about Bitget’s unlicensed crypto futures products, available at leverage levels up to 125:1, which can amplify both gains and losses drastically.
A Bitget spokesperson said the company is actively seeking licenses in over 15 markets and aims to cooperate constructively with regulators to provide a secure platform.
Dr. O’Neill cautioned that, unlike traditional markets with IPO regulations and disclosure requirements, the relatively unregulated crypto space leaves less experienced investors exposed. He noted that market ebbs and flows are normal but crypto’s extreme price swings are less predictable, making it challenging to explain sudden surges or drops in value, such as Bitcoin’s recent volatility.
As cryptocurrency continues to weave itself into gaming, finance, and everyday life, its growing accessibility brings both opportunities and significant risks—particularly for younger users who may inadvertently engage in speculative trading or gambling-like activities. Regulatory frameworks are evolving to address these challenges, but experts urge caution and education for anyone entering the crypto ecosystem.