The claim seems to be that the game will attract people who don't view the game as an income stream, but rather just as a game. They pay the entry fee, and then may also buy assets from other players, thus funding the play-to-earners.

I think there's a slim chance this could be a viable business plan, but probably not in any socially-good way. The mobile games industry reaps a good chunk of its profits from "whales", customers who spend crazy-seeming amounts of money on games. Blockchain-based games may also be especially dangerous to young gamers who get access to a parent's credit card and rack up huge charges. This already happens in games like Fortnite, but whereas Epic Games can be pressured into giving refunds to parents when this happens, a blockchain offers no protection if the rules of the game don't allow for it.

We're probably better off if it _is_ a Ponzi scheme.