Axie Infinity is a Play-to-Earn game where players can buy, breed, and pit Pokémon-like characters, called Axies, for the purpose of earning in-game money, known as power potions. sweet love (SLP).
These potions can then be exchanged for real money. Play-to-earn is a business model where players are rewarded with cryptocurrency in exchange for playing a game. Each Axie is a non-fungible token that can be bought or sold. To start battles, players need to have at least three Axes, with the cheapest costing around $200. In 2020, the most valuable monster was sold for 300 ethereum worth over $130,000 at the time.
Before you scoff at funny names, you should know that Axie Infinity NFTs have reached $4 billion in all-time sales, as crypto games for winning continue to grow in popularity. Reddit co-founder Alexis Ohanian, who is an investor in Axie Infinitythink play-to-earn games will be 90% of the games market in five years.
Wayne Huwho previously led YouTube ads monetization and is now a Venture Capital Fund partner, SignalFire, served as my sherpa to guide me through this metaverse. Hu said the metaverse already has many people working there. He pointed out that in the Philippines, Axie Infinity has gained popularity. Players are paid in tokens and then sent to a digital wallet, where they could then be sold for cryptocurrencies.
Players can take in-game currency and cash it out in the real world. In the Philippines and other countries less wealthy than America, young people can earn thousands of dollars a month. For the player and his family, this is a life-changing sum of money. There are people around the world who have risen out of poverty by working in the metaverse, Hu says.
There is a thriving ecosystem around Axie Infinity. This includes players – who treat this as a potentially high-paying job – bankers who fund players, community managers who recruit players, coaches and teachers who onboard new players, and owners who own property.
As the costs of competition increase rapidly, players need to be financially supported by “Scholarships,” arranged with deep-pocketed managers. Bankers offer their monsters or simply speculate on the games by loaning out a team of Axie monsters in exchange for a cut in their SLP income.
Hu estimates that there are around 2.5 million daily active users in Axie Infinity, 40-50% of them in the Philippines. Axie Infinity and other NFT-powered play-to-earn games are their own self-contained ecosystem where people socialize, play games, and work.
Axie Infinity’s economy is based on new user growth, as each new user that enters must purchase three Axies, which is money entering the Axie economy. This model could be dangerous. If the game loses popularity if the stakes get too high, people will leave to find other more affordable play-to-earn games.
To date, the growth of new users has been explosive. The developer behind Axie Infinity, Sky Mavis, has raised $152 million and is valued at $3 billion. The company has already achieved a turnover of more than 2 billion dollars. The company achieves between $30 million and $40 million in market trading volume every day.
It’s easy to dismiss these digital economies as mere games. It redefines the meaning of work within the Metaverse and offers people a way to earn money to support themselves and their families.