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- Axie Infinity will release 21.5 Million AXS tokens in a few days.
- In March 2022, the Lazarus group invaded the Ronin Bridge.
- AXS has lost over 90% from the value since its all-time high in November 2021.
A Massive Axie Infinity Drop in Few Days
Axie Infinity has become the favorite play-to-earn game following the rise in NFT and metaverse. People in the Philippines played the game to generate revenue streams during the covid era. But it appears like the good times for its native token, AXS, are over. The asset has already shed a major amount from its value, and Sky Mavis has announced that they’ll unlock more Axie Infinity Shards on October 24th,2022.
According to the data aggregator, TokenUnlock, the team will release 21.5 Million AXS for team, advisors, staking and more. This constitutes 8% of the total supply of the asset. Currently, 40% of the Axie Infinity Shards are locked in the wallets. $390.8 Million worth of tokens are reserved for staking rewards, $226.3 Million for the team, $190.2 Million for play-to-earn economy, $74.3 Million for ecosystem, $52.9 Million for network advisors, and $17.5 MIllion for private sales.
Now the question is, if this will help the network or destroy it like LUNA? The token has lost over 90% from its value since it peaked $165 on November 6, 2021. More supply will create a pile of AXS that will increase the selling pressure. This is more like a suicide mission for the network taking crypto winter into the account.
Axie Infinity got the biggest blow in March 2022 when Lazarus, a North Korean hacker group, compromised the Ronin Bridge to steal over $625 Million from the network. However, the game creators, Sky Mavis, handled the situation and reopened the bridge and promised to compensate the victims in full.
According to a report, crypto winter has not affected the metaverse tokens. This points toward increasing metaverse development across the globe. Play-to-earn economy is expected to become a $2.8 Billion industry by 2028. Apart from this, the move-to-earn economy is anticipated to stay intact amid the market downturn.
Metaverse is still in its infancy but P2E games like Axie Infinity, Decentraland, The Sandbox and more have established the foundation of digital spaces. Companies like Microsoft, Meta, Apple, Nvidia and more are actively developing metaverse. Interoperability will play the prime role to create an interconnected network of multiple digital universes.
Axie Infinity’s native token, AXS, was exchanging hands at $8.83 at the time of publication. The chart shows a falling pattern since November which hasn’t stopped till now. The token release may push the asset to break its support zone and drop even further.
Anurag is working as a fundamental writer for The Coin Republic since 2021. He likes to exercise his curious muscles and research deep into a topic. Though he covers various aspects of the crypto industry, he is quite passionate about the Web3, NFTs, Gaming, and Metaverse, and envisions them as the future of the (digital) economy. A reader & writer at heart, he calls himself an “average guitar player” and a fun footballer.
