i

Km. 23 Sumulong Highway,

Antipolo, 1870, Rizal
May 2022 (02) 8571 8993

GATTUD, KARL CHEYNNE A.

College of Business and Accountancy
Reference Number:

Dear Mr. Gattud,

I am pleased to inform you that the research protocol for your research entitled FINANCIAL
LITERACY ON CRYPTOCURRENCY: THE CASE OF AXIE INFINITY PLAYERS IN
ANTIPOLO CITY has been APPROVED by the Institutional Ethics Review Committee of the Our
Lady of Fatima University. This means that your research protocol has passed the ethical standards
imposed by the Philippines Health Research Ethics Board (PHRED).

The following are the standard guidelines for you to follow:

1. This approval will take effect for a period of twelve (12) months. At the end of this period,
if the project has not been completed you are required to accomplish an Application for
Continuing Review Form one month before the period ends in order to renew the approval
for another term.
2. Once the study has been completed or if for any instance terminated at an earlier time you
are required to submit a Study Completion/Termination Form. So that the committee can
officially close the protocol.
3. The approved research protocol must be followed at all times in order to protect the
integrity of your human subjects. Changes in the protocol and materials utilized in the study
necessitate you to submit a Protocol Amendment Form to be approved by the committee
once received.
4. In such occurrence when the protocol was not followed you are required to accomplish a
Protocol Deviation/ Violation Form within seven (7) working days after the occurrence in
order to document the event.
5. For studies that require longer periods of investigation, a Progress Report Form must be
accomplished every semester.
6. Failure to comply with the standard guidelines can lead to disproval or termination of the
research protocol.

I, together with the ethics committee am every much excited for the completion of your investigation.

Sincerely,

Norbert Lewin F. Soliven, MAN, LPT, RN

Chair Institutional Ethics Review Committee
Our lady of Fatima University- Antipolo Campus
 ii

Financial Literacy on Cryptocurrency: Assessing the Crypto Asset

Management skills proficiency of Axie Infinity

players in Antipolo city

Karl Cheyenne A. Gattud123, Bernadette M. Tipay123, Emily P. Retiza123,

Shiela Marie R. Rodriquez123, Rafael M. Pama123

and Marie Stacy Margarett P. Diaz1234

1
College of Business and Accountancy

2
Accounting Research Methods

3
Our Lady of Fatima University

4
Research Adviser

May 2022
 i

Endorsement

This thesis entitled: “Financial Literacy on Cryptocurrency: The Case of Axie Infinity
Game Players in Antipolo City.” Prepared by Karl Cheyenne A. Gattud et al. of BSA3Y2-1S, in
partial fulfillment of the requirements for the degree of Bachelor of Science in Accountancy has
been examined and now recommended for Oral Examination.

________________________
Marie Stacy Margarett P. Diaz, CPA, CAT, MST
Research Adviser
Our Lady of Fatima University- Antipolo Campus

This is to certify that the thesis: “Financial Literacy on Cryptocurrency: The Case of
Axie Infinity Game Players in Antipolo City.” Prepared by Karl Cheyenne A. Gattud, Emily P.
Retiza, Shiela Marie R. Rodriquez, and Rafael M. Pama of BSA3Y2-1S , has successfully passed
the Oral Examination.

________________________________

Dr. Norma A. Gappi, CPA

Program Head BSA/BSAIS Department
 ii

Certificate of Originally

We hereby declare that this thesis is our own work and that, to the best of our knowledge
and belief. It contains no material previously published or written by another person or material to
which to a substantial extent has been accepted for award of any other degree or diploma of a
university or other institute of higher learning except where due acknowledge in the text.

We also declare that the intellectual context of this thesis is the product of our work, even
though we may have received assistance from others on style, presentation and language
expression.

Karl Cheyenne A. Gattud

Principal Investigator
Members:

Bernadette M. Tipay

Emily Retiza

Shiela Marie R. Rodriquez

Rafael M. Pama

Marie Stacy Margarett P. Diaz, CPA,

CAT, MST
Research Adviser
Our Lady of Fatima University-
Antipolo Campus
 iii

Table of Contents
Endorsement . . . . . . . . . . i
Certificate of originality . . . . . . . . ii
Table of Contents . . . . . . . . . iii
List of Tables . . . . . . . . . . v
List of Figures . . . . . . . . . . vi
List of Appendices . . . . . . . . . vii
Abstract . . . . . . . . . . viii
1.0 Introduction . . . . . . . . . 1
1.1 Literature Review . . . . . . . . 2
1.1.1 Theoretical Framework . . . . . . 2
1.1.2 Crypto Asset Management . . . . . 3
1.2 Variable Discussion . . . . . . . 3
1.2.1 Socioeconomic Demographic . . . . . 3
1.2.2 Financial Literacy Indicators . . . . . 5
1.2.3 Crypto Market Understanding . . . . . 6
1.2.4 Trading and Investing Skills . . . . . 7
1.2.5 Portfolio Research and Management . . . . 7
1.3 Research Paradigm . . . . . . . 11
1.4 Significance of the Study . . . . . . . 12
1.5 Definition of Terms . . . . . . . 12
2.0 Methods of Research . . . . . . . . 15
2.1 Research Design . . . . . . . . 15
2.2 Research Locale . . . . . . . . 15
2.3 Population and Sampling . . . . . . . 15
2.4 Research Ethics . . . . . . . . 15
2.4.1 Objectivity . . . . . . . 15
2.4.2 Protecting Anonymity and Confidentiality . . . 16
2.4.3 Informed Consent . . . . . . 16
2.4.4 Principle of Integrity . . . . . . 16
2.4.5 Right to Withdraw . . . . . . 16
2.5 Research Instrument . . . . . . . 16
2.6 Data Collection . . . . . . . . 16
 iv

2.7 Data Analysis . . . . . . . . 17

3.0 Result . . . . . . . . . . .
4.0 Discussion . . . . . . . . . . .
4.1 Conclusion . . . . . . . . .
4.2 Recommendation . . . . . . . . .
Acknowledgement . . . . . . . . . .
References . . . . . . . . . . .
 v

List of Tables
 vi

List of Figures
Figure 1: Financial Literacy Indicators Base on Quality of Life
Figure 2: Relationship between level of financial literacy on cryptocurrency and proficiency on
selected crypto asset management skills
 vii

List of Appendices
Appendix A: Survey Questionnaire
Appendix B: Letter of Permission to conduct a Survey
Appendix C: Informed Consent Form for the Respondents
Appendix D: Validation Letter
Appendix E: Statistician Certificate
 viii

Abstract

The pandemic has introduced many Filipinos to cryptocurrency through the popularized
Play2Earn Game, Axie Infinity. However, is this venture really worth it? This study aims to assess
both the level of Financial Literacy of the players of the said game and their proficiency on selected
Crypto Asset Management Skills and identify if there is a significant relationship and difference
between the two. 30 respondents are players of the game located in Antipolo City. They are given
questions that correlate to their level of financial literacy through different indicators presented
and proficiency on selected crypto asset management skills namely: Market Understanding,
Trading and Investing Skills and Portfolio Management. The data gathered manifested an
importance of obtaining certain skills and understanding before pursuing a venture relating to
cryptocurrency.
 1

1.0 INTRODUCTION
The rise in popularity of Play2Earn crypto games came about during the peak of the
Pandemic when the world shifted to a more remote type of work that left incapable families jobless.
A recent study (Francisco et al 2022) showed the perception of Filipinos in pursuance of these
Play2Earn Games. While most of them recognize that venturing in crypto games comes with high
rates of instability and volatility, they still believed that the market would experience massive
growth considering its nature. This upside has become one of the major motivations of people that
resulted in the pursuance of the most popular Play2Earn game right now, Axie Infinity. However,
outside the unpredictability and volatile nature of crypto, the lack of market knowledge resulted in
high-level of trust issues and disagreement among players and the game developers, with a handful
of players claiming the game to be an elaborate Ponzi scheme.

This paper seeks to expound on the topic of “lack of market knowledge” among these
players and gauge their overall level financial literacy on various indicators relating to the crypto
market. It also seeks to assess their proficiency on selected crypto asset management skills that are
necessary for a healthy crypto investment and see if there is a significant difference and
relationship between the two.

This study benefits people who are interested in pursuing Play2Earn games and helps them
to understand what is lacking in them before going on with the investment. It benefits them with
certain knowledge and skills necessary to obtain first to make their investment in crypto
worthwhile.
 2

1.1 REVIEW OF RELATED LITERATURE

1.1.1 Theoretical Framework

Financial
Awareness

Use of E- Financial

Finance Knowledge/
Skills

Financial
Literacy
Indicators Attitude
Financial
towards
Culture
finance

Managing Financial
Risk Behavior

Fig 1: Financial Literacy indicators on the quality of life

Luburic (2018) studied about the influence of Financial Literacy on the quality of life and
cited the several indicators as measures to Financial Literacy as shown in the figure above.
According to the Organization for Economic Co-operation and Development (OECD), Financial
Literacy is the combination of knowledge, skills, attitude, and behavior necessary to make sound
financial decisions and ultimately achieve individual financial well-being.

A financial literate person should have some basic awareness of a market culture, key
financial issues and the ability to apply certain skills for different situations. Thus, they should be
able to answer questions in relation to concepts such as risk management, inflation, and interest.

Studies by Lusadari and Mitchell (2017) reviewed financial literacy on different countries
and found out that it is most common among people living in developed countries such as Japan,
 3

Korea, Australia and other developed countries in the Europe. Meanwhile, developing countries
such as India, Philippines, Saudi Arabia and other South American countries scored fairly average
on these financial literacy tests.

1.1.2 Crypto Asset Management

Howard (2022) described A crypto asset as a cryptocurrency or asset that has been
tokenized, which is the transfer of an object's value to a blockchain. The tokens can be
fractionalized for broader distribution of ownership, much like dividing ownership of an asset into
shares—but these shares are digital.

Eaton (2022) described Asset management as all about monitoring, buying, and selling
investments in order to optimize portfolio diversification, balance out risk, and/or increase the
return a portfolio is generating. Crypto asset management is simply the process of applying this
same exercise to digital assets that live on blockchain technology. The rapid growth of
cryptocurrency during the past years has created a need for skills to manage these assets by treating
them like a normal investment. Crypto asset management is the practice of buying, tracking and
selling crypto assets through a blockchain to get the best portfolio performance possible.

1.2 VARIABLE DISCUSSION

1.2.1 Socioeconomic demographics in Cryptocurrency

Cryptocurrency users have now reached roughly 16 million individuals, which indicates over
160% growth over the past year here in the Philippines (Bagano, 2021). Its ease of access and
hassle-free account creation are some of its appealing factors but even more so is the rise in
popularity of Play2Earn Games.

Axie Infinity is by far the most popular game in the play2earn space. Players of the game can
pit their Axie NFTs against other players and whoever wins will be rewarded a crypto token called
“Smooth Love Potion” which can be used to create more Axies or traded at exchange platforms
for cash. Released during 2018, it became a huge sensation in the Philippines 2 and a half years
later during the middle of the COVID-19 Pandemic and amidst record high rates of unemployment
throughout the country. Rural areas were hit even harder where families did not only lose their
 4

employment and job opportunities but also their food supply. (Li, 2022) A turn to these more
unconventional sources of income became a lifesaver for families who struggled during those
trying times. Axie Infinity user count during September 2020 had around 50,000 monthly active
users worldwide. In the span of one year, it has just under 2 million monthly players, a 3,811%
year-over-year increase. The Philippines ranks the highest among all countries of monthly active
players accounting for 40.53% of it. (Perry, 2022)

Research about demographic characteristics of cryptocurrency users is scarce, what more for
a specific group like the Axie Infinity player-base. Most of the literature we have reviewed lacks
comprehensive statistics about the users. Steinmetz et al (2021) suggested that the knowledge, we
have about ownership of cryptocurrency is mostly associated with the male gender and young age.
Wciom (2019) present additional determinants of awareness about cryptocurrency: higher
education (71%), living in major cities (75%), male gender (66%) and active internet usage (69%).

Delatto (2019) who is working with google analytics also shared interesting demographics
about crypto users when it comes to age group and income status. Cryptocurrency is most popular
with people ages 18-29% (31%) followed by people ages 30 to 49 (21%) and last was of people
age 65 or over (3%). While Income status does not seem to influence cryptocurrency use: From
high to middle class all the way to low class income families share an even score when it comes
to cryptocurrency use.

Rochon (2019) of Covalent Research group did a player research on Axie Infinity. Players can
be categorized into three: the Managers, Scholars, and Casuals. Managers are people who own
multiple Axie teams which they can rent out to scholars. Scholars are players who do not own
personal Axie teams but are only renting Managers teams for a percentage share on the earnings.
Casuals are players who purchased their own Axie team and are using it personally. Research
found that player retention to be extremely high with almost 75% of players returning for a second
month after joining the game (over the past 3 months). However, only 14% of these players have
ever bought an Axie. Meaning most of the player base are scholars.

Research Question 1: What are the demographic profile of the respondents in terms of:

• Age
• Gender
 5

• Educational Attainment
• Type of Player
• Number of Months playing the game

1.2.2 Financial Literacy Indicators

Luburic (2018) described Financial Literacy is based on three fundamental factors. These
are financial awarenesss/culture, financial knowledge/skills and management of financial risk.
These financial indicators show the level of financial awareness, the level of knowledge and skills,
as well as the level of financial culture. They show the relationship between finance and money as
demonstrated by the financial behavior of people in various life situations. For an even complete
overview of literacy, it is necessary to include an indicator that shows how financial risk are being
handled and how effective it is. All these indicators along with complementary ones are
independent but when put together can show the real level of financial literacy.

1. Financial Awareness- is the understanding about financial concepts and procedures

necessary to make sound financial decisions.
2. Financial Behavior- Financial behavior is defined as the management of a person’s
savings, expenditure, and budget, it also relates to certain human activities in terms
of money management such as cash, savings, and credit are regarded as financial
behavior.
3. Financial Culture- Financial behavior is guided by the culture or shared values and
assumptions that varies from one environment to another. Being financially aware
or cultured will guide people how to respond on different financial risk and
opportunities.
4. Financial Knowledge/ Skills- are specific skills which are necessary in order to
manage expected or unexpected situations that involve financial problems. Such
skills include Budget Preparation, Variance Analysis, Record-keeping, Financial
Analysis, Saving and so on. Financial Knowledge is being able to use said skills on
proper situations effectively. Because they are specific, the concept on Financial
Knowledge/Skills comes from the fact that they require time and training to develop
on somebody and enough experience to apply them.
 6

5. Managing Risk- Risk management is the process of identification, analysis, and

acceptance or mitigation of uncertainty in investment decisions.
6. Use of E-finance- Bearing in mind the constant growth of technological
advancement and the risk these advances carry with them. As well as the
acceleration of changes in all spheres of society, and in that sense in the financial
system, the Use of E-Finance as an indicator has roughly found its place right here.
7. Attitude towards finance- Basically, it’s the attitude of people to what they earn and
other income, and is shown by their spending habits and by their spending habits
and by their savings in the future.

Research Question 2: What is the respondent's level of Financial Literacy on Cryptocurrency

in terms of:

• Financial Awareness
• Financial Behavior
• Financial Culture
• Financial Knowledge/ Skills
• Managing Risk
• Use of E-Finance
• Attitude towards finance

1.2.3 Crypto Market Understanding

Mazer (2022) on his work in “Demystifying Cryptocurrencies” broke down all the hype around
cryptocurrency and examined its appeals, characteristics, including issues on regulations and
privacy that surround the space. He cited the following characteristics as the basic knowledge
someone must understand before entering the crypto market.

1. Security- Buying goods and services with cryptocurrencies takes place online and does not
require full disclosure of identities. They allow consumers to complete purchases without
providing personal information to merchants. This pseudonymous nature of crypto
transactions raises security concerns. In a typical centralized transaction, if the good or
service is defective, the transaction can be cancelled, and the funds returned to the buyer.
 7

However, in the cryptocurrency ecosystem, there isn’t a central organization to facilitate

recourse against the seller. Computer hacking, theft and scams also benefits from this
pseudonymous nature of crypto and are much easier to pull of on a decentralized system.
2. Regulations- Regulatory treatment of cryptocurrencies continues to struggle. Certain
countries like Japan, U.S and China have set up some sort of regulation with
cryptocurrency but with the constant evolution of technology and its nature of transcending
global boundaries, national regulations on crypto seems to be limited. And since
cryptocurrencies were developed to avoid these government controls, it is unclear whether
regulation efforts be successful.
3. Volatility- Volatility is a measure of how much the price of any particular asset has moved
up or down over time. As a newer class of asset, crypto is widely considered to be volatile
— with the potential for significant upward and downward movements over shorter periods
of time. Volatility is one of the factors that goes into assessing investment risk.
4. Riskiness- in relation to volatility, the more volatile an asset is, the riskier it’s considered
to be as an investment — and the more potential it has to offer either higher returns or
higher losses over shorter periods of time than comparatively less volatile assets. Crypto
being very volatile is capable of very high returns or very low losses.

1.2.4 Trading and Investing Skills

Puyat (2021) described that over 87% of Filipino who invest in Axie Infinity are in it
because of the Play2Earn aspect. They know very little about cryptocurrency but are only
interested because you can earn from it. Many individuals treated it as their source of income but
overtime it also became their introduction to crypto trading as a whole.

In Crypto, it became necessary to obtain certain knowledge and skills on different trading
and investing schemes that composes the bulk of where earnings from Crypto comes from.
Filipinos who are predominantly in it for the earnings will have to be assessed on their knowledge
on these.

John (2021) who works with “Trading Strategy Guides” outlined the most basic knowledge and
skills that one should have in order to comfortably trade on Crypto.
 8

1. Understanding Indicators- Indicators are used to make predictions about which way the
price of a cryptocurrency will move. These are mathematical tools that may assist traders
in predicting the price movement of digital currencies with greater accuracy. The data from
the formulas are plotted on a graph and placed alongside or overlayed on a trading chart,
allowing traders to make decisions. There are a bunch of indicators that are available on
crypto charts that already harness historical data and show a lot more information than just
prices. Understanding these indicators and what they show will help traders gain more
information needed before deciding on a trade.
2. Using Technical Analysis- Technical Analysis is the analyzation and use of the indicators
in order to make a sound decision. Once a trader understands what indicators such as RSI
and MACD represent, putting the information they provide together and analyzing these
trends and patters is what Technical Analysis about. Carter (2017) indicates that around
57% of people who use technical analysis on their trading has shown to have an increased
positive result in terms of their profit.
3. Entry and Exit Strategies- Also known as Trading Strategies involves taking position on a
trade and knowing when to exit utilizing the high volatility of crypto prices to make profits.
There are a lot of trading strategies that can be used, the most popular ones include Dollar
Cost Averaging, Swing Trading, Scalping and HODLing. John (2021) pointed out that the
utilization of following a trading strategy can reduce losses of over 39%.
4. Record Keeping- Like in traditional accounting practices, Bookkeeping is one of the most
basic skills that accountants use in order to easily track and mange finances. Crypto trading
also benefits in having some sort of record tracking that helps in managing profits and
losses. Popular crypto tracking software include Blockfolio, Pionex and Coin Market
Manager. Others who do not want a paid subscriptions on said software utilize Microsoft
Excel for their record keeping. Researchers continue to prove on the existence of a positive
influence between record keeping and performance of a business or portfolio.

1.2.5 Portfolio Research and Management

Kamath (2021) describes risk involve in cryptocurrency relatively higher than other financial
markets due to its high volatility and irreversible actions. 95% of crypto beginners lose money and
the top reason for that is poor risk control skills that leads to impulsive behavior. To counteract
 9

such behavior, the skill that is found out to be the most lacking on these beginners is portfolio
research and management or the ability to build and manage a selection of multiple investments
that will meet the long-term financial goals and risk tolerance of an investor. Kamath indicates
certain skills and concepts necessary for investors to understand in order to properly build an
effective portfolio.

1. Diversification- a common misconception by beginners is that holding onto Bitcoin will

one day make them millionaires. Although it is a good starting point to invest onto a single
token, they also have to consider the fact that the whole crypto ecosystem is far more than
just a single token. Diversification revolves around investing onto numerous tokens so that
when the price of one token crashes, there won’t be too much loss because of the other
tokens still present in a portfolio.
2. Rebalancing- Like diversification, rebalancing is about managing multiple investments in
the portfolio. While diversification is about the number of the investments, rebalancing is
about the amount of each investment. Whether to invest this amount of money into token
A and a different amount of money into token B based on the relative trend prices and
strengths of these tokens is what rebalancing seeks to achieve. Understanding to rebalance
a portfolio during price fluctuations in the market will help continue to gain from
outperforming assets.
3. Minimizing Losses- Among entry and exit strategies is the utilization of stop losses and
take profit areas. Beginners are encouraged to use these techniques to secure their capital
and prevent drastic losses during bearish markets. Stop losses refers to an executable order
which closes an open position when price decrease to a specific barrier. Take Profit on the
other hand is the opposite and liquidates an order when price reaches a certain level. Stop
losses save traders from trading in unprofitable areas while take profits let you get out of a
trade before the market turns around you.
4. Getting Emotions under control- That feeling when you see a huge green percentage
growth on a coin chart and you don’t own, so you sell all other investments to buy into it.
Emotions can get the better of you when trading in cryptocurrency. Other factors include
peer pressure, fear index and greed that when not manage correctly can lead to a clouded
judgement. Managing expectations and emotions has a larger factor compared to lack of
 10

skill when evaluating reasons for losses in crypto trading. Beginners showed a 77% of loss
in trading when overcame by the fear of missing out (FOMO) and other emotional factors.

Research Question 3: What is the respondent's level of proficiency to selected Crypto Asset
Management Skills in terms of:
• Crypto Market Understanding
• Trading and Investing Skills
• Portfolio Research and Management

Research Question 4: Is there a significant difference on the respondent's level of

Financial Literacy on Cryptocurrency?

Hypothesis 1 (H01): There is no significant difference on the respondent's level of Financial

Literacy on Cryptocurrency.

Research Question 5: Is there a significant difference between the respondent's level of

proficiency to selected Crypto Asset Management Skills?

Hypothesis 2 (H02): There is no significant difference between the respondent's level of

proficiency to selected Crypto Asset Management Skills.

Research Question 6: Is there a significant relationship between the respondent's level of

Financial Literacy on Cryptocurrency as compared to their level of proficiency to selected
Crypto Asset Management Skills?

Hypothesis 3 (H03): There is no significant relationship between the respondent's level of

Financial Literacy on Cryptocurrency as compared to their level of proficiency to selected
Crypto Asset Management Skills
 11

1.3 RESEARCH PARADIGM

INDEPENDENT VARIABLE
Demographic profile of the
respondents in terms of:
• Age
• Gender
DEPENDENT VARIABLE
• Educational Attainment
Level of proficiency to selected
• Type of Player
Crypto Asset Management
• Number of Months playing
Skills in terms of:
the game
• Crypto Market
Level of Financial Literacy on Understanding
Cryptocurrency in terms of: • Trading and Investing
Skills
• Financial Awareness • Portfolio Research and
• Financial Management
Knowledge/Skills
• Attitude towards finance
• Financial Behavior
• Managing Risk
• Financial Culture
• Use of E-Finance

Simulacrum

Figure 2: Relationship between level of financial literacy on cryptocurrency and proficiency on

selected crypto asset management skills
 12

1.4 SIGNIFICANCE OF THE STUDY

• Axie Infinity Players. In terms of users, highlighting the mastery of core financial principles
in their financial knowledge. Our goal is to see if such users have sufficient financial
knowledge and skills to engage in fundamentally difficult financial transactions, financial
instruments that are risky and volatile Are the players prepared to make decisions?
monetary decisions? Do they have a sufficient level of financial literacy and knowledge?
Are they the capable of anticipating and comprehending the considerable financial risk
inherent in a highly turbulent new market instrument?
• Cryptocurrency Consumers. The Play2Earn feature of Axie Infinity became an
introduction for majority of the people to the cryptocurrency world and its features. The
benefits of this study will extend to anyone who is currently in the Crypto space and willing
to learn more about aspects and skills necessary to make a worthwhile investment in
cryptocurrency.
• Potential Users. We try to figure out what makes cryptocurrency users tick. and potential
users, with a special emphasis on their financial literacy (knowledge of basic financial
concepts). Does it influence whether you have a favorable or negative attitude toward it?
Cryptocurrencies are popular among potential buyers. Are abilities in digital literacy, age,
and other criteria relevant? financial advice interacting with financial literacy in preference
for informal practices determining the cryptocurrency demand. Likely, the examination of
the connection between financial literacy and cryptocurrency sentiments is crucial because
of numerous factors.

1.5 DEFINITION OF TERMS

• Axie Infinity- Players collect and raise Axie fantasy creatures in this famous crypto-
based game by Vietnam game company Sky Mavis. Axies are used to battle other Axies
and are bred to produce progeny that can be sold on the Axie NFT marketplace. Native
tokens that are used to pay for breeding are gained via playing.
• NFT- a digital identity that cannot be copied, substituted, or subdivided, stored in a
blockchain, and used to verify authenticity and ownership. These are blockchain-based
 13

cryptographic assets with unique identification numbers and metadata that identify them
from one another.
• Ronin Blockchain- Axie Infinity's crypto wallet is called Ronin Wallet. The Ronin
network lowers the cost of trading and breeding Axies, as well as the cost of playing Axie
Infinity.
• Smooth Love Potion (SLP) - is the Axie Infinity gaming metaverse's in-game digital
money. It allows users to breed collectible digital pets known as Axies in the game. SLP
tokens have increased in popularity to the point where they are being traded on
cryptocurrency exchanges
• Axie Infinity Shard (AXS)- For the Axie Universe, there is an ERC-20 governance token.
The glue that holds the Axie community together is Axie Infinity Shards (AXS). If AXS
token holders stake their tokens, play the game, and vote in important governance votes,
they will be eligible for awards.
• Managers- Players of the game who own multiple axie teams and rents it out to scholars.
• Scholars- Players of the game who are renting axie teams from managers and have a
percentage share on their earnings.
• Casual Players- Players of the game who own one personal axie team and has 100%
ownership on the earnings it accumulates.
• Dollar Cost Average- This allows you to profit from crypto market downturns without
risking too much money at any given time, allowing you to keep more liquidity while still
profiting from market increases. Simply set aside a certain amount of money to invest in
your preferred cryptocurrency over a specified length of time.
• HODL- During market downturns, it has become a mantra of cryptocurrency believers,
designed to comfort concerned traders that they should ride out any downturn because of
what they view as Bitcoin's long-term benefits.
• Swing Trading - is a strategy for capturing short- to medium-term gains in a stock (or
other financial asset) over a few days to several weeks? When it comes to investing, there
are primarily two approaches. Day traders and long-term investors are the two types of
investors.
• Staking- Crypto staking is the process of locking up crypto holdings in order to obtain
rewards or earn interest.
 14

• Yield Farming- Yield farming allows investors to earn yield by putting coins or tokens in
a decentralized application, or dApp. Yield farmers generally use decentralized exchanges
(DEXs) to lend, borrow or stake coins to earn interest and speculate on price swings.
• Bearish Patterns- A bearish engulfing pattern is a technical chart pattern that signals lower
prices to come.
• Bullish Patters- A bearish engulfing pattern is a technical chart pattern that signals higher
prices to come.
• Binance- Binance is a cryptocurrency exchange which is the largest exchange in the world
in terms of daily trading volume of cryptocurrencies.
• Relative Strength Index (RSI)- Is a technical analysis indicator that examines the size of
recent price fluctuations to determine if a stock or other asset is overbought or oversold.
• Moving Average Convergence Divergence (MACD)- Is a trend-following momentum
indicator that depicts the relationship between two security price moving averages. On the
chart, it appears as two oscillating lines with no limits.
• Stop Losses- A stop-loss order is an order placed with a broker to buy or sell a specific
stock once the stock reaches a certain price.
• Take Profits- A take-profit order (T/P) is a type of limit order that specifies the exact price
at which to close out an open position for a profit. If the price of the security does not reach
the limit price, the take-profit order does not get filled.
• Fear of Missing Out (FOMO)- Is an emotional reaction to the perception that others are
leading more fulfilling lives or that crucial opportunities are lost. FOMO frequently causes
anxiety, dissatisfaction, melancholy, and stress.
• Bollinger Bands (BOLL)- Bollinger Bands are price envelopes drawn at a standard
deviation level above and below the price's simple moving average. The bands respond to
volatility fluctuations in the underlying price since their distance is based on standard
deviation. These lines depict a volatility band or range in which a security's price is moving
up or down.
 15

2.0 METHODS OF RESEARCH

2.1 RESEARCH DESIGN

This study is Correlational Quantitative Research because it will examine the relationship
between variables such as the demographic profile of respondents and their awareness to the
different crypto-asset management skills. The researchers will use a descriptive questionnaire in
google-forms to assess the socio-demographic profile such as age, gender, educational attainment,
income status, and experience playing the game; as well as the awareness perceived by the
respondents of the crypto-asset management skills in terms of Crypto Management Intelligence,
Investing and Trading Scheme and Portfolio Management.

2.2 RESEARCH LOCALE

This study will be implemented on the players of Axie Infinity Game in Antipolo City for
majority of the researchers are addressed in this city. Antipolo City is a 1st class component city
and capital of the province of Rizal, Philippines. The respondents will answer the questionnaires
provided that can be answered in their homes or any comfortable place and time they choose for
it can be accessed easily through a google form link given.

2.3 POPULATION AND SAMPLING

The target population is made up of Axie Infinity Game players in Antipolo City. From the
population, thirty (30) Axie Infinity players will be selected through the use of Purposive Sampling
technique in which the researchers seek for volunteer respondents from the population of Axie
Infinity players in Antipolo City.

2.4 RESEARCH ETHICS

The researchers will strictly observe and follow the three objectives of research ethics while
doing the study. First objective is to protect the human participants. Second, to ensure that the
research is conducted in a way that serve interest of individual, group and/or society as a whole.
Third and lastly, to examine specific research activity for its ethical soundness and look for issues
such as objectivity, confidentiality protection and proper consent.

2.4.1OBJECTIVITY- Researchers must strive to avoid bias in data collection, data analysis,
data interpretation and other aspect of research where objectivity is required.
 16

2.4.2. PROTECTING ANONYMITY AND CONFIDENTIALITY- The researchers will

ensure that private and sensitive information from respondents is handled with
confidentiality. As well as be anonymous for the respondents are given an option to indicate
their names in the questionnaire.

2.4.3. INFORMED CONSENT- The researchers will ensure that each participant is fully
aware and gave their consent to be part in the data gathering process.

2.4.4. PRINCIPLE OF INTEGRITY- The researchers will act with respect and be
responsible in every action during the data gathering process. To keep the promise of
confidentiality, act with sincerity and give the respondent the right to choose when and
where they will answer the questionnaire comfortably.

2.4.5 RIGHT TO WITHDRAW- The respondents have the right to decide whether they will
participate or not in the process of data gathering. The researchers will ensure that the
respondents were informed before participating. Also, the respondents have the right to
withdraw at any stage in the research process if they want.

2.5 RESEARCH INSTRUMENTS

The researchers will use survey questionnaire that is divided into two (2) parts. First part is to
assess the socio-demographic profile such as age, gender, educational attainment, income status,
and experience playing the game. Second, to assess the awareness perceived by the respondents to
the crypto-asset management skills in terms of Crypto Management Intelligence, Investing and
Trading Scheme and Portfolio Management. Likert Scale Method will be used in the
questionnaires to specify the level of agreement of the respondents to the statements provided.
After gathering the data, Multiple regression/correlation and Pearson’s correlation test will be
performed for the hypothesis testing since multiple independent variables are involved in this study.

2.6 DATA COLLECTION

The data will be gathered primarily through the administration of questionnaires distributed to the
thirty (30) respondents. The researchers formulate survey questionnaires to assess the demographic
profile of the respondents and their perceived awareness with regard to the crypto-asset
management skills in terms of Crypto Management Intelligence, Investing and Trading Scheme
 17

and Portfolio Management. Then, distribute the questionnaire through a google form link that the
respondents can answer when and where they are comfortable at. The data will be encoded,
analyzed and interpreted by the statistician.

2.7 DATA ANALYSIS

Descriptive statistics will be used to provide a simple description and present the data gathered.
Inferential Statistic-Multiple regression/correlation and Pearson’s correlation will be used to test
the hypothesis of the study. The Pearson’s Correlation will be used to measure the strength of
linear association of two variables that is denoted by r.
 18

“RISE TO THE TOP”

SURVEY QUESTIONNAIRE

FINANCIAL LITERACY ON CRYPTOCURRENCY: THE CASE OF AXIE INFINITY

GAME PLAYERS IN ANTIPOLO CITY

Names (optional): ___________________________________ Gender: ________________

Instruction: Please write (/) that corresponds to your choice

DEMOGRAPHIC PROFILE OF THE RESPONDENTS IN TERMS OF:

1. Age [ ] 18 Below [ ] 19-29 Y/O [ ] 30-49 Y/O [ ] 50 Above

2. Educational Attainment: [ ] Elementary [ ] High [ ] Technical [ ] Bachelor’s

school Vocational Degree,
Masters/Doctorate
Degree

3. Type of Player: [ ] Manager [ ] Scholar [ ] Casual

4. Number of Months [ ] 3 months [ ] 4-6 Months [ ] 7-12 months [ ] 1 year Above

playing the game:
below
 19

Instruction: Please write (/) that corresponds to your choice

The following rubrics that will guide you with your answer

4- Extremely Aware (EA)

3- Very Aware (VA)

2- Slightly Aware (SA)

1- Not Aware (NA)

WHAT IS THE RESPONDENT'S LEVEL OF FINANCIAL 4 3 2 1

LITERACY ON CRYPTOCURRENCY IN TERMS OF: (EA) (VA) (SA) (NA)

FINANCIAL AWARENESS
1. Transactions within cryptocurrency are irreversible

2. It is riskier to invest in cryptocurrency than in other

financial instruments

3. Prices of crypto assets are very volatile

FINANCIAL BEHAVIOR
4. Buying crypto assets when the market is down is
recommended

5. In crypto, it is better to only invest what you can afford to

lose

6. Getting a loan to invest in crypto is not recommended

FINANCIAL CULTURE
7. Listening to Community FOMO (Fear of Missing Out) is
not helpful

8. FUD (Fear, Uncertainty and Doubt) statements to dissuade

investors is normal on cryptocurrency

9. There are a lot of scammers in the crypto space

FINANCIAL KNOWLEDGE/SKILLS
10. Understanding trade patterns help you maximize profits
 20

11. Using indicators when reading charts help you predict price
fluctuations

12. Recording trades or having a trade history is important in

planning out your next move on the market

MANAGING RISK
13. Trading in more than two crypto tokens lessens risk of lose

14. Optimizing your portfolio to contain different stable and

emerging coins helps maximizing profit

15. Not entering suspicious sites/links will less likely get you
scammed

USE OF E- FINANCE
16. Keeping your seed phrase on a secure location where
nobody has access to is important

17. Trading outside verified platforms such as binance is very

risky

18. Using trezor or two step authentication to secure your

crypto wallet is important

ATTITUDE TOWARDS FINANCE

19. Reinvesting profits earned from crypto to other potential
ventures is better than spending it on short term
expenditures

20. Having investments in more than one place is ideal

21. Keeping a savings account where money stored there is not

used will be beneficial in the future
 21

Instruction: Please write (/) that corresponds to your choice

The following rubrics that will guide you with your answer

5- Extremely Proficient (EP)

4- Very Proficient (VP)

3- Slightly Proficient (SP)

2- Not Proficient (NP)

LEVEL OF PROFFICIENCY TO SELECTED CRYPTO 4 3 2 1

ASSET MANAGEMENT SKILLS PERCEIVED BY THE (EP) (VP) (SP) (NP)
RESPONDENTSIN TERMS OF:
CRYPTO MARKET UNDERSTANDING
22. I do not enter any suspicious sites relating cryptocurrency

23. I only transact with verified people or on verified platforms

24. I check crypto charts occasionally for the latest price actions
on tokens I trade

25. I do not invest on a crypto project unless I have done my

own research about it

INVESTING AND TRADING TECHNIQUES

26. Indicate how proficient you are to the following strategies
used in crypto trading:
i) Dollar Cost Averaging

ii) Swing Trading

iii) Scalping

27. Indicate how proficient you are to the following strategies

used in crypto investing:

i) Yield Farming

ii) HODL
 22

iii) Staking

28. I use RSI, MACD, BOLL and other indicators in reading

charts

29. I am able to see Bearish and Bullish Patterns forming and

predict prices accordingly

30. I record my trades using tools like Excel, Pionex,

Blockfolio and other recording tools available

PORTFOLIO RESEARCH MANAGEMENT

31. I trade in more than two tokens help lower risks

32. My trading portfolio consist of a larger portion on more

profitable coins like BTC and ETH rather than altcoins like
SLP and AXS

33. I use Stop loss and Take profit orders help secure capital
before market crashes

34. I do not listen to community hype and pressure in decision

making when trading
 23

Letter of Permission to conduct a Survey

May 3, 2022

To our respondents,

Good day!

We, the 3rd year students of Our Lady of Fatima University taking up a Bachelor of Science
in Accountancy are humbly asking for your participation to meet our objectives by answering our
questionnaire. It is part of our data gathering procedure for our research entitled “FINANCIAL
LITERACY ON CRYPTOCURRENCY: THE CASE OF AXIE INFINITY GAME
PLAYERS IN ANTIPOLO CITY”.

Rest assured that any information provided will be used solely for academic reasons and
will be kept strictly confidential.

Thank you for your kind response and assistance.

Sincerely yours, Signed by:

Gattud, Karl Cheyenne
Tipay, Bernadette
Retiza, Emily Marie Stacy Margarett P. Diaz, CPA,
Pama, Rafael CAT, MST
Rodriguez, Shiela Marie Research Adviser

Approved By:

Dr. Norma A. Gappi, CPA

Program Head BSA/BSAIS Department

 24

Informed Consent Form for the Respondents

May 3, 2022

Greetings of peace!

We, the undersigned researchers are currently conducting research entitled “FINANCIAL
LITERACY ON CRYPTOCURRENCY: THE CASE OF AXIE INFINITY GAME
PLAYERS IN ANTIPOLO CITY” as one of the requirements on our course of Bachelor of
Science in Accountancy. Thus, we would like to ask your permission to answer our questionnaire
as part of our data gathering procedure.

Rest assured that your identity will be highly kept confidential and the information you
will provide will only be used for purpose of this academic endeavor.

Thank you so much and more power!

Sincerely yours, Signed by:

Gattud, Karl Cheyenne
Tipay, Bernadette
Retiza, Emily Marie Stacy Margarett P. Diaz, CPA,
Pama, Rafael CAT, MST
Rodriguez, Shiela Marie Research Adviser

Approved By:

Dr. Norma A. Gappi, CPA

Program Head BSA/BSAIS Department

 25

Validation Letter

May 3, 2022

CERTIFICATION

This is to certify that Karl Cheyenne Gattud, Bernadette Tipay, Emily Retiza, Rafael Pama,
Shiela Marie Rodriguez who are currently conducting a research paper entitled “FINANCIAL
LITERACY ON CRYPTOCURRENCY: THE CASE OF AXIE INFINITY GAME
PLAYERS IN ANTIPOLO CITY” has confer with me for the validation of their Aid of
interpretation of our interview. I acknowledge them for their efforts to considering our judgements
regarding our experiences.

This certification was issued whatever purpose it may serve.

Signature over printed name

Date:
 26

Statistician’s certificate

May 3, 2022

CERTIFICATION

This is to certify that Karl Cheyenne Gattud, Bernadette Tipay Emily Retiza, Rafael Pama,
Shiela Marie Rodriguez who are currently conducting a research paper entitled “FINANCIAL
LITERACY ON CRYPTOCURRENCY: THE CASE OF AXIE INFINITY GAME
PLAYERS IN ANTIPOLO CITY” has conferred with me for the statistical analysis of their
research paper. I acknowledge them for their efforts to considering our judgements regarding our
experiences.

This certification was issued whatever purpose it may serve.

Mr. Francis Castro, MBA

University Statistician
Our Lady of Fatima University