{"id":48777,"date":"2021-07-27T12:04:33","date_gmt":"2021-07-27T04:04:33","guid":{"rendered":"https:\/\/www.imoney.my\/articles\/?p=48777"},"modified":"2021-07-27T18:05:05","modified_gmt":"2021-07-27T10:05:05","slug":"what-is-axie-infinity","status":"publish","type":"post","link":"https:\/\/www.imoney.my\/articles\/what-is-axie-infinity","title":{"rendered":"What Is Axie Infinity And Why Is It Getting So Popular?"},"content":{"rendered":"
This article first appeared on iMoney Philippines and has been edited for local audiences.<\/em><\/p>\n Axie Infinity is an NFT game that\u2019s been around since 2018 and its gameplay is similar to Pokemon games (where it takes inspiration from). You assemble a team of three cute creatures called Axies and go on adventures, conquer different levels, and battle other players in the Arena. There are upcoming features in the game where players can even build a land-based kingdom for their pets.<\/p>\n This game is being developed by Sky Mavis<\/a>, a technology-focused game studio founded in early 2018 whose headquarters is located in Ho Chi Minh, Vietnam.<\/p>\n The unique thing about this game is that it rewards players for every win they achieve in the game. The reward is in the form of cryptocurrencies called Smooth Love Potion (SLP) and Axie Infinity token (AXS).<\/p>\n To learn more about the game, you can read their white paper<\/a> here which covers the principles behind the cryptocurrencies.<\/p>\n But before we dive deep into the Axie ecosystem, it\u2019s important to understand how being an NFT game makes it different from a regular game, even from a gamer\u2019s standpoint. This will give you a more thorough understanding of the financial risks and rewards of the game, outside its cryptocurrency element.<\/p>\n Non-fungible tokens, aka NFTs, are unique digital assets created in the Ethereum blockchain. These assets can be in the form of art, music, virtual real estate, and even games!<\/p>\n The idea is that while anything digital can be copied an infinite amount of times, owning an NFT tells people that you own the original version. So owning the NFT of a song tells the world that you own the first digital copy of it. It is this certification that gives NFT value.<\/p>\n In opensea.io<\/a>, artwork is auctioned and sold for a good amount of money every day. Meanwhile, music NFTs have generated $100 million in sales in just 30 days<\/a> – this space alone is a direction that could revolutionise how we purchase music.<\/p>\n Axie Infinity generates NFTs in the form of Axies. Each being a unique virtual creature that can be sold.<\/p>\n At the moment, there are three ways for players to earn from the game:<\/p>\n The game guarantees 150 SLPs a day just by accomplishing some tasks. Players have a 100 SLP cap per day for the adventure mode and a 50 SLP reward for completing all the daily quests. This alone could already score you RM180 (as of July 26, 2021) per day based on the SLP rate upon writing.<\/p>\n Breeding Axies require mating two unrelated Axies. While you may need to spend some SLPs and AXS to do this, you will be able to create a new Axie at a considerably lower cost than buying one. Then you can sell the Axies in the marketplace for profit.<\/p>\n Yes, it\u2019s possible to flip Axies. Buy Axies at a lower cost and sell them when the price goes up. Upon writing, we managed to flip a few Axies and earn a few hundred dollars for profit.<\/p>\n With all that said, we come down to the most important point of the game – its sustainability. You can\u2019t find it in any analysis charts of the most prolific crypto or stock traders, it really has nothing to do with that.<\/p>\n With many people playing the game, there is the risk of an oversupply of Axies. If this happens, supply will outstrip demand and prices will adjust downwards; this in turn will lower exchange rates for SLPs and AXS.<\/p>\n But those things have been addressed by the developers in their game road map. Somewhere down the road, people will be incentivized to spend their Axies and remove them from circulation, solving the issue of overpopulation and oversupply in their marketplace.<\/p>\n There are also plans to add additional utilities to Axies, making them do more meaningful things than just battle non-stop to earn those coins.<\/p>\n Stocks and crypto traders and experts may argue that the in-game cryptocurrency could easily be manipulated. However, the game developers have taken steps to mitigate this risk by ensuring that players are forced to hold on to their SLPs for 15 days before they can sell it to exchanges. Once it\u2019s back to circulation, it\u2019s returned to the players as a reward.<\/p>\n Breeders currently drive the demand for more SLPs and AXS, which is one of the reasons why their prices are gradually increasing. As breeders spend currency to make more Axies, the game keeps players from dumping their tokens with its 15 days claim policy in place.<\/p>\n<\/span>So what are Non-fungible tokens (NFTs) and why should you care?<\/span><\/h2>\n
<\/span>How can you earn money by playing Axie Infinity?<\/span><\/h2>\n
<\/span>SLP farming or mining<\/span><\/h3>\n
<\/span>Breed Axies for sale<\/span><\/h3>\n
<\/span>Flipping Axies<\/span><\/h3>\n
<\/span>The real challenge of the game\u2019s sustainability<\/span><\/h2>\n
<\/span>It\u2019s not population control<\/span><\/h3>\n
<\/span>It\u2019s not pump and dump of their cryptocurrency<\/span><\/h3>\n
<\/span>The game\u2019s stability and its devs playing catch up<\/span><\/h3>\n