Axie Infinity has been in the news for multiple reasons. Read this blog to know more about the metaverse platform.
Metaverse platforms have become all the rage ever since Facebook rebranded to Meta. However, platforms like Axie Infinity have been on the market since 2018 and have been at the forefront of “play to earn”.
Axie Infinity is, in simple terms, a gaming platform that allows you to play and earn. The game works by allowing players to collect or mint Non-Fungible Tokens or NFTs known as Axies.
The development of Axie Infinity began in 2017 and the platform’s first game, a battle system, was launched in 2018. Eventually, a card battle system was also released in 2019.
These Axies are creatures that can also be traded, bred, or used for battle on the platform. Axie Infinity is popular because, at its core, it is a metaverse platform that’s engaging and potentially lucrative.
Axie Infinity is built using the Ronin Network powered by Ethereum. The goal is to allow players to engage in a Pokemon-esque metaverse where creatures can be bred, collected, and used for battle.
There is a starting cost involved. The development house, Sky Mavis, suggested that a player may have to shell out as high as $400 to get started on Axie Infinity.
Players can progress through the game by collecting as many Axies as they can. Ethereum-based cryptocurrencies are the base of the rewards players can get by trading and winning.
The world of Axie Infinity is quite deep. So much so that there’s something known as Digital Colonialism developing where players operate on a salary to earn rewards for their bosses who loan them Axies.
That’s not all. Players can even own real estate that’s steadily approaching real-world pricing. For example, one piece of land on Axie Infinity was sold for as high as $2.3 million in November 2021.
Broadly speaking, Axie Infinity is known to allow users to play and earn. For many, this may be a dream scenario for many who can simply battle it out online and earn cryptocurrencies and NFTs.
The platform is diversifying as well, with players getting the opportunity to buy assets in the metaverse. The overall point of Axie Infinity may be two-fold:
While Axie Infinity has soared in popularity, it has met with its fair share of hacks, roadblocks, and other issues. That’s why investors must evaluate multiple factors before choosing to invest in the coin or platform.
The play-to-earn model of web3 games like Axie Infinity has given rise to a gaming economy. However, many believe that this is not too dissimilar to online gambling.
Moreover, the cost of getting started may be relatively high for many while the return on investment, albeit never guaranteed, can be difficult to achieve. Finally, the Ronin Network has been prone to hacks and attacks.
Thus, whether or not you should invest in Axie Infinity will depend on what you want to get out of your investment.
Note: Facts & figures are true as of 10-07-2022. None of the information shared here is to be construed as investment advice. Exercise caution when investing in unregulated assets like cryptocurrency.
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