Axie Infinity Coin: Origin a Gamechanger?
After the crypto market went south, it seemed that Axie Infinity coin would follow. However, on June 14, it jumped by 4.5%, and after losing some progress, it continued its growth. At the time of writing, the Axie Infinity coin was up by 11.9% to $14.60, leaning towards the bulls. The rise can be explained by the release of Axie Infinity: Origin, launched in early access mode. Players are enabled to test the new game for free by simply signing up and downloading the Sky Mavis Hub. Origin enacts numerous highly-requested upgrades, including junctural turns, revamped components, and improved gameplay.
According to the latest official reports, Origin has registered more than 600,000 accounts and is being launched in four phases/seasons. Furthermore, there is a plan to start with a change in balance according to its fundamentals. Afterward, it will proceed with the introduction of Smooth Love Potion (SLP) rewards and NFT Runes/Charms.
Also, it plans to introduce the crafting feature for mentioned NFTs, and users will be enabled to mint on Ronin and transact on the marketplace. According to the analytics and the recent market situation, it seems Origin is helping the rise of the token. AXS is characterised as a non-fungible token-based online video game created by Vietnam-based studio Sky Mavis, famous for its in-game economy that utilizes Ethereum-based cryptos.
Players are enabled to accumulate and mint NFTs which exist in the form of axolotl-inspired digital pets known as Axies. Axie Infinity coin (AXS) is powered by an Ethereum token, and players there can fight, collect, and create a digital land for their Axies. Holders can also obtain rewards for staking tokens, just playing and are even encouraged to engage in key governance votes.
Is the Axie Infinity coin part of a pyramid scheme?
In 2021, when play-to-earn games, including Axie Infinity, became a huge sensation, success seemed imminent. More so, Philip La, the product chief of the world-famous Pokémon GO, decided later to join the Sky Mavis team.
The truth is, Origin was made to revive the plummeting sector. Just for example, the number of daily average users (DAU) was almost 3 million in 2021 and the floor price of Axies hovered around $400 during the happy times.
But not to be too harsh, the other similar NFT projects went through an almost cloned scenario. Some studios even abandoned projects because of the state the market is currently in. Be that as it may, these events have led many people to question the chances of survival for this model. Is Play-to-Earn (P2E) form really dead, or is it just another pyramid scheme?
To speed up the whole process, an investment model, also known as the pyramid scheme, usually depends on money paid by new members to earn profit for older players/investors. So, rather than release a product or service that makes money, investors must depend on registration fees paid by new members. London School of Economics fellow Frank Muci claims Axie Infinity is a typical pyramid scheme example with no “structural sources of demand” for the utility token Smooth Love Potion (SLP).
“By and large, no one is playing for the fun of it. Instead, people in developing countries just log on day after day and grind for hours because their outside option is even worse, for now,” Muci asserted.
Philip La, however, commented that Sky Mavis’ focus is on making their players want to play the game, not only because of profit but also because it’s fun. “We’ve emphasised numerous times, the fun game component must come first. If players are not willing to spend to play, progress, and express themselves in the game, then all the burn mechanisms in the world won't matter since players won't want to spend on them," La said.
According to the Axie Infinity’s white paper, the game’s plan is to evolve into a decentralised autonomous organisation (DAO), enabling complete community governance.
One thing is sure - AXS is living up to the Web 3.0 gaming ideas because players can earn it to live in the metaverse. The question is now – will Axie Infinity prove to be strong enough to keep up with the evolving play-to-earn economy
Author: Teuta Franjkovic
A sincere writer with a strong will to share knowledge on all things blockchain, crypto, metaverse and DeFi. Starting out as a writer with Cosmopolitan, Teuta has risen through the ranks of business journalism, editing newspapers and websites within the fintech industry for over 15 years. She holds a double MA in Public Politics and Entrepreneurship.