There are many other crypto projects out there with slightly flawed models. As the price fell, the in-game economy started to show its flaws, and the cracks in the model grew. But it couldn't sustain that momentum and it didn't pay enough attention to potential security problems. Investors and speculators piled in, hoping for extraordinary profits in the short term. Some projects will succeed, but many will not.Īxie promised a revolutionary new blockchain gaming concept that worked while it was popular. This is a new and relatively untested technology that people are attempting to use for all kinds of purposes. Bottom lineĪxie Infinity's woes reflect several challenges that face the whole cryptocurrency market. Axie may find it has solved one problem but created another. If player numbers continue to decline, the platform will face a different kind of economic collapse. But that action caused users to move away from the platform. Eventually that serves to dilute the value of the tokens in circulation.Īxie said it needed to act to avoid economic collapse. But generating huge amounts of SLP wasn't sustainable - it is a bit like printing increasing amounts of money to keep an economy afloat. That SLP can then be used to breed more Axie NFTs. Players use teams of Axie NFTs to generate SLP in the game by fighting or completing various quests and challenges. There are two cryptocurrency tokens in Axie land, Axie Infinity and Smooth Love Potion (SLP). Learn more and get started today with a special new member discount.
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Sign up today for Stock Advisor and get access to our exclusive report where you can get the full scoop on this company and its upside as a long-term investment. In fact, you've probably used this company's technology in the past few days, even if you've never had an account or even heard of the company before. We’ve found one company that’s positioned itself perfectly as a long-term picks-and-shovels solution for the broader crypto market - Bitcoin, Dogecoin, and all the others. The number of active wallets connecting each day declined, according to data from DappRadar. In February, Axie implemented changes in the rewards ratio designed to make the in-game economy more sustainable. Less people want to play AxieĮven before the hack, cracks in Axie's gaming model were starting to show. All the more so as headlines continue to pop up about the hackers' efforts to launder the money and law enforcements' efforts to stop them. However, the attack is still fresh in people's minds. It also announced a $150 million fundraising round to help cover some of those costs. Sky Mavis, the company behind Axie, promised to recover or reimburse all the stolen funds. These types of blockchain bridges are designed to improve the performance of the Ethereum (or other) networks, but they also bring additional security risks. The breach wasn't noticed for almost a week, at which point the Ronin bridge was immediately closed. On March 23, hackers made off with over 173,600 ETH - worth over $600 million - from Axie Infinity's Ronin bridge. Investors are still wary after Axie's $600 million hack But it's also due to some serious Axie-related issues that may not have easy solutions. The economic and geopolitical climate is very different from the one in which cryptos soared. In part, that's because many cryptocurrencies are struggling. It's lost over 40% in the past 30 days and 19% in the past week. However, things can change quickly in crypto land and Axie Infinity could now be losing its shine.Īxie is currently trading at over 75% less than its all-time high. It gained over 17,500% in the year, according to CoinGecko, and put the concept of play-to-earn gaming on the map. The Ascent's best crypto apps for 2022 (Bonuses, $0 commissions, and more)Īxie Infinity (AXS) was one of the hottest cryptos of 2021.
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