Cryptocurrency games are one of the latest innovations in the cryptocurrency industry. Nowadays, everybody goes gaga with these blockchain games. Adults and even teens are patronizing this technology due to their potential. While cryptocurrency remains jargon to most people, these NFT(Non-Fungible Token) games have broken the barriers of crypto technicalities and even become more popular to all ages. Besides, the terms video and online games are something that billions of people around the world would easily understand. These cryptocurrency games are not just for entertainment purposes but enable each user to earn money out of them. But are they really worth the hype?
One of the popular cryptocurrencies is the Axie Infinity Shards, also known as AXS. This NFT game was created by a Vietnamese developer Trung Nguyen and co-founded by the game developer company Sky Mavis. It was introduced in the market in 2018 and became a real hype up until the present day.
For potential investors and those who are new to NFT games, you should know the most important matter in Axie Infinity is that cryptocurrency is earned while playing it, which can be exchanged for real money.
In a span of six months after its launch, Axie Infinity has gained raging popularity, and active gamers have skyrocketed to more than 5000%.
To get started into the cryptotrading world, you can always visit a renowned trading platform like Bitcoin Era.
What is Axie Infinity?
Axie Infinity (AXS) is basically a cryptocurrency trading and battling game that is Ethereum blockchain-based, operated and partially owned by players. It is inspired by other online games like Tamagochi and Pokemon, where players acquire, breed, raise, trade and battle virtual creatures called Axies.
These cute little Axies come in many different forms with over 500 available body parts, including avian, beast, aquatic, reptilian, bugs and insects etc. Their rarity scales are categorised into four: common, rare, ultra-rare and legendary. Players can combine body parts in order to create rare and unique breeds with high variability.
One Axie represents a single non-fungible token possessing various strengths and attributes. Players enter their Axies into battles which increases their chances to evolve. Moreover, the winning team gains more experience, which helps them to level up. Axies combined and bred together can produce rare offspring which users can sell in the marketplace in exchange for tokens.
Axie’s governance token is known as Axie Infinity Shards or AXS. Currently, according to CoinGecko, the Axie Infinity game holds the 33rd place position. Recently, it has undergone an upgrade and development which experts predict that these changes might lead to an increase in price or might possibly lead to bullish prices in the near future. In addition,.the demand continuously increases, which may positively impact the gaming industry.
But if unfortunate events happen to crypto, Axie Infinity’s price might also crash down. In other words, as a crypto-based gaming system, AXS also possesses the common attribute of every cryptocurrency – price instability and volatility.
What will become of AXS in the year 2021?
Over the last 30 days, AXS has performed great with a price of over 100%. If this continues, there might be a possibility that Axie might surpass its resistance level price of $311.52 or even continuously increase.
On the other hand, if investors turned against cryptocurrency, its price might also plummet down, dethroning Axie from its bullish position.
Why should investors keep an eye on NFT games like Axie Infinity?
As an Ethereum blockchain-based online game, Axie is considered the largest, fastest growing and one of the most renowned cryptocurrency games. As of April 2021, there are a total of over 38,000 active players, and currently, the company brags about having more than 2 million users and counting.
This popularity can be advantageous on Axie Infinity. Moreover, players not only invest their time but also their money in investing into AXS by buying Axies which prevents them from leaving and jumping to another crypto game whenever they want.
Besides its popularity, Axie Infinity is also known for its good management system. It is a well-funded game, and over the years, the company has gained success in terms of raising money. In fact, it has raised an amount of $7.5 million as part of its Series A funding program. In addition, prominent names such as Alexis Ohanian, the co-founder of Cuban and Reddit have taken an interest in investing.
Their Series B funding round has raised an amount of $152 million with Andreessen Horowitz of Silicon Valley as one of their contributors and investors.
Things you should know before investing:
Axie Infinity is truly an interesting and enticing game to play, given that besides entertainment, it also enables users to earn money out of it. However, you must bear in mind that every investment comes with risks, and crypto investment is even riskier compared to other industries out there.
As a crypto-based game, Axie Infinity tends to be volatile in nature. Its valuation is uncertain and may experience sudden price fluctuations. Given that it has already experienced price instability in the past, then it might possibly happen in the future.
When should be the right time to invest?
A lot of people have taken an interest in investing in Axie Infinity. But before you decide to invest, do not decide impulsively. Experts may disapprove of AXS investment due to the game itself being too risky. Some people even quit their jobs just to play Axie, as the game can be time-consuming. As a result, most players in Asia, especially in the Philippines and Vietnam are quitting their jobs in order to focus on this strategic game. This may not be a good decision. Although this game has helped many people especially during the pandemic, it is not recommended to think that AXS could be your only source of income.
The bottom line is that cryptocurrency and NFT games are risky investments. It is important to learn the basics before delving into the industry. Study the basic strategies. Know your limitations. And most importantly, do not invest more than you can afford to lose.