The AXS token slides 30% this week as the gamers abandoned the play to earn the title and fled the platform en masse so let’s have a closer look today in our altcoin news.
The AXS token that powers the Axie Infinity game dropped by 30% over the past week and on the day, it is down by 1.2%. The Axie Infinity governance token is trading at $30.39 and only last month, AXS was worth under $75 per token so the users that hold the token can participate in various proposals like how the platform’s treasury should be spent in the in-game mechanics. AXS hit an all-time high last month at a price of $165 but today it recorded a drop of more than 81%. AXS is one of the two in-game tokens for the Pokemon-like game Axie Infinity.
19/ The Future
We believe that these economic changes will allow us to start righting the ship and getting the economy moving in the right direction. We know that it will be key to execute on delivering new burn mechanisms and issuance reductions along are not enough
— The Jiho.eth 🦇🔊 (@Jihoz_Axie) February 3, 2022
The AXS token slides 30% over the week as users started abandoning the platform. Alongside the token, the users can purchase NFTs that represent Axis whcih are creatures that you use to duel against the opponents and the winners can earn SLP tokens which are later sold for another currency or destroyed to mate the Axis and create more. The SLP token is now trading at a little over a penny and it is down by 2.6% over the past day. The users can spend money on digital plots of land in the Axie universe represented as NFTs but Axie Infinity was still one of 2021’s breakout crypto projects and since it fell on hard times.
The reasons are different but they can be linked to the failing token comic design and the recent $622 million hack of the Ronin sidechain. As per the data from DAppRadar, the number of users on the platform peaked at 63,000 and the future is as low as 12,200. the trend is likely because of a new economic model by the Sky Mavis team and it resulted in the game giving fewer SLP tokens as rewards in order to enhance the tokens’ inflation but most of the game has been built on an inflationary economy. Axies can be created without limit and there were far more SLP being created than destroyed so without the sustained growth to match the arrangement, it is hard to see how the game can sustain itself.
The game’s speedy sidechain Ronin was also hacked for $622 million and some of the funds have been recovered but there are more plans to reimburse the affected users.
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