Table Of Interest
- 1 What Is Axie Infinity (AXS)?
- 1.1 Introduction
- 1.2 What is Axie Infinity Shard (AXS)?
- 1.3 AXS use cases
- 1.4 How to store AXS
- 1.5 Things You Need to Know Before Buying Axie Infinity
- 1.5.1 1. Axie is a play-to-earn cryptocurrency game
- 1.5.2 2. Axie’s not the only play-to-earn game on the market
- 1.5.3 3. Axie Infinity generated more revenue in the past 30 days than the other top ten apps combined
- 1.5.4 4. Axie land sale broke records
- 1.5.5 5. You need three Axies to take part in the game
- 1.5.6 6. People are quitting their jobs to play Axie
- 1.5.7 7. The price jumped over 600% in a month — then halved in value
- 1.5.8 8. You can’t buy Axie on major U.S. exchanges
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It’s 2021, and that means you can earn money by breeding virtual pets.
An easy way to think of Axie Infinity is to imagine a blockchain game that combines Pokémon and CryptoKitties. More specifically, Axie Infinity is an NFT game and ecosystem built on the Ethereum blockchain. Its native cryptocurrency is an ERC-20 token called Axie Infinity Shard (AXS).
Within the ecosystem, players can use teams and formations in the Adventure mode (PvE – Player vs. Environment) to battle monsters in Lunacia – the Axie Infinity kingdom. They can also choose the Arena mode (PvP – Player vs. Player) to battle other real-life Axie trainers. When you win, you gain an asset called Small Love Potion (SLP), which is used for breeding Axies. SLP is also an ERC-20 token and can be traded on exchanges like Binance.
What is Axie Infinity Shard (AXS)?
The AXS coin (Axie Infinity Shard) is relatively new to the Axie Infinity universe – it was released in November 2020. AXS holders will be able to use the token for staking and receive AXS by voting and playing. These rewards come from the Community Treasury, which is filled by in-game purchases. As of January 2021, however, this Community Treasury and the staking features are not yet implemented.
The total supply of AXS will be 270,000,000. Some tokens were allocated to the public sale, some for the play to earn features and some to Sky Mavis and advisors to the project. The initial supply at the first public sale was just under 60,000,000. The number of tokens released is expected to grow yearly until 2026.
AXS use cases
Axie Infinity wants to be a mature game that gets players hooked, has a strong community, and a thriving ecosystem. For fans of Pokémon or Final Fantasy, Axie Infinity offers a fun gaming experience to become immersed in.
As of February 2021, there are over 27,000 players of Axie Infinity. If the game can garner an even larger player base, it will surely add more value to the ecosystem. As we’ve mentioned earlier, the Ronin sidechain, along with a free-to-play version, is being implemented to encourage even more growth.
By playing Axie Infinity, players can earn both AXS and SLP tokens by various means. These tokens can then be exchanged for other cryptocurrencies. There are already gamers out there making money from playing Axie Infinity.
How to store AXS
The future of the AXS token relies on the playability and popularity of the Axie Infinity game. The game is fun to play, fleshed out, with plenty of room to grow. It has also proven itself over the past two years and has new features on the way to entice more players to join.
Things You Need to Know Before Buying Axie Infinity
1. Axie is a play-to-earn cryptocurrency game
Play to earn is a relatively new form of gaming, but the concept is catching on. Players in these games earn cryptocurrency tokens within the game, which they can trade on decentralized exchanges for hard cash.
In Axie Infinity, players own cute creatures called Axies. Each Axie is a non-fungible token (NFT), which means it is a unique digital collectible in its own right. Players can breed and battle Axies, as well as complete quests and farm resources.
There’s a whole economy within the game (a world called Lunacia). Players can use their in-game tokens — Smooth Love Potion (SLP) and Axie Infinity Shard (AXS) — to buy land, farm, or breed Axies in Lunacia. And since the tokens have value, gamers can also use them to pay for rent or food in real life.
2. Axie’s not the only play-to-earn game on the market
If you’re considering buying AXS today, bear in mind that there are other crypto games available that might eclipse today’s craze. What sets Axie apart is that it’s had years to develop the product and build its community. The project originally started in 2017 and it only took off recently, which the team believes will make it harder to imitate.
However, blockchain technology is also developing rapidly, and every successful coin seems to spawn a number of copycats. With any cryptocurrency, there’s always a risk that something better will quickly replace it.
3. Axie Infinity generated more revenue in the past 30 days than the other top ten apps combined
According to data from Token Terminal, Axie has generated almost $90 million in revenue in the past 30 days. At the time of writing, the other top ten apps on Token Terminal’s list totalled around $41 million combined.
Revenue comes from in-game purchases, such as land. Axie takes a 4.25% fee for buying and selling Axie NFTs and charges fees for breeding. What’s truly remarkable is that 95% of its revenue goes back to the players. Which is why, as we’ll discuss shortly, people in developing countries are devoting so much time to the game.
However, one thing to remember is that cryptocurrencies are not stocks. If you buy stocks in a company that produces huge revenue, you may get a share of the profit through dividends. If you buy AXS, you don’t own a share in the business. The main way you can profit is through an increase in the token’s price.
4. Axie land sale broke records
Back in February, a user spent 888.25 ETH (worth about $1.5 million at that point) on nine plots of land in Axie. CoinDesk said it was the largest NFT sale on record at that point.
Since then, we’ve seen a host of multimillion dollar NFT sales, including Twitter CEO Jack Dorsey’s first tweet, which sold for almost $3 million. This highlights the fact that AXS tokens are not the only way to invest in Axie Infinity — owning Axies and digital land could also be profitable for those willing to immerse themselves in Lunacia.
5. You need three Axies to take part in the game
As an investor, you’re more likely to buy AXS tokens in the belief they will increase in value long term. However, Axie Infinity is not geared toward investors — it’s a community that encourages token holders to participate.
And participation can get expensive. Especially as one downside of Axie Infinity’s success is that the price of Axies has shot up. Players used to be able to get started with $5 to $10. Right now, the minimum price for an Axie is around $200, so gamers need to spend $600 to play. Axies can breed up to seven times before they go sterile.
You’ll also need two wallets and a chunk of Ethereum (ETH) before you can even buy your first Axie.
6. People are quitting their jobs to play Axie
According to the Cryptoday newsletter on Substack, the average player can earn around 4,500 SLP a month. At today’s prices, that’s around $1,500.
Axie says there are more than 250,000 daily active players. The game is both time consuming and strategic. Not only do players need to carefully breed their Axies to develop particular skills, they also need to complete quests to earn energy that lets them participate further.
As a result, some workers in countries like Vietnam and the Philippines are giving up their day jobs to dedicate themselves to Axie. It has helped many people through pandemic-related economic struggles, though most see it as a side hustle rather than a day job.
7. The price jumped over 600% in a month — then halved in value
From mid June to mid July, AXS jumped by over 600%. The price hit an all-time high of $29.13 on July 15 before falling to $14.19 on July 20. At the time of writing, AXS is climbing again.
All cryptocurrency prices are volatile, and big price jumps are often driven by investors who see a coin is rising and get scared they’ll miss out. Make sure you do your homework and look at Axie’s long-term potential before you buy.
8. You can’t buy Axie on major U.S. exchanges
Right now, AXS and SLP aren’t available on top U.S. cryptocurrency exchanges, which means they aren’t easy to buy. It is possible to use a decentralized exchange, but be careful as these are not always open to U.S. investors. Buying from an unregulated exchange increases the risk of fraud and means your account could get frozen if authorities crack down on crypto exchanges.
All in all, Axie could be an interesting one to watch. But it’s a good idea to understand the crypto gaming industry and the play-to-earn concept before spending your hard-earned cash.
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