By Iván Tello, COO of Decrypto.la
The online video game Axie Infinity is revolutionizing the crypto world and gaming with its “Play to Earn” mode, which rewards players with cryptocurrencies. The development of the game is based on blockchain and NFT technology and it is a simple way to understand cryptocurrencies and that technology: the game writes all the data of the characters, their experience, and evolution on a blockchain. Everyone has access to that information, but no one can change it. The transparency it provides is sensational. Undoubtedly, many people are getting to know the crypto ecosystem thanks to these games and that is something very necessary in order to achieve greater adoption of cryptocurrencies worldwide.
Axie Infinity has more than 350 thousand active users per day. More than 90 thousand ETH have already been traded on the platform and the most expensive axie was sold for 300 ETH (a figure close to a million dollars)
The video game consists of buying axies (NFT) and making them fight against other players or against the computer (this last modality is known as Player vs Emulator). Each of these axies -which is unique and unrepeatable-, has a type (fish or beast), a specific damage, health levels and abilities, roles and levels, among other characteristics. At the time of battle, each player must combine the skill cards that they played and the owner of the last axie standing is the one who remains with the triumph.
Axie Infinity is supported by large companies such as Samsung, Ubisoft, AAVE, and Binance. And without a doubt that the greatest benefit perceived by users is the possibility of earning cryptocurrencies for playing. Axie Infinity revolutionized the market and made many users start playing not only for fun but as an investment. The gaming industry moves millions of dollars and this video game seeks to distribute part of those profits among the players.
Another interesting aspect is the scholarship modality through which you can invest in the game and earn money without the need to play. This is thanks to the fact that it is possible to assign the axies to a third party to play for one and the prizes obtained are divided between the parties.
In Decrypto.la it is evaluated to add AXS and SLP, as well as other cryptocurrencies to the platform.
What are the risks?
Like any investment, it has an associated risk. In the case of AxieInfinity, we must pay special attention to the valuation of its Smooth Love Potion (SLP) and Axie Infinity (AXS) tokens, since the rewards are paid with them.
One risk could be that these tokens will depreciate and the return on investment will no longer be as attractive as it is at current levels. One thing to keep in mind is that the SLP token has unlimited issuance, something that can negatively affect its valuation if there is no good economic scheme behind it.
Another aspect to take into account is the number of active users. Although today more and more people play Axie, it is necessary to know that the growth will not be endless and it is vitally important that the game is prepared to be profitable even in the face of a possible decrease in the number of players.
By Ivan Tello, COO of Decrypto.la
© 2024 Cryptopress. For informational purposes only, not offered as advice of any kind.
