Axie Infinity is an online blockchain-based video game where players fight one another with NFT collectibles known as Axies. Axies are unique in-game characters that battle in an RPG-like turn-based fashion. Where players can win in-game currency called small love potions or SLP tokens. And recently they launch a new game mode where users earn another token instead of SLP. The best part about it you can exchange earned tokens for real-world money.
You can see what makes this game so attractive. It’s a play-to-earn business model where users have fun and earn money at the same time. Axie Infinity allows you to play and earn at the same time. To enter a battle a user must own a total of three axes since the lowest value taxi is priced at around 125 dollars. Investors need to chip in at least 375 dollars to play but the cheapest ones don’t win many fights and some users secured their place on the leaderboard by buying up the rarest Axies. Don’t let the low floor prices fool you one of the rarest axes sold for 130,000 last year. The question is what happens when you want a new Axie but can’t afford to spend more eats or AXS?
There’s another in-game mechanism called breeding that allows you to use one of your axes to produce up to seven more. Players who breed new axes can profit by selling them on the market or improve their chances at the game by breeding powerful axes to make new ones. You might think that breeding increases the supply and lowers the price of each Axie but it’s not that simple. Breeding costs money so you can’t just mint new tokens for free and increase the circulating supply without paying up.
For every new character that you breed you need at least one AXS token as well as a number of SLP tokens which makes the process far from cheap. However, the money does go back into the Axie ecosystem and thus increases its value. Axie infinity has gamified NFTs in every way imaginable. It allows crypto investors to have fun playing what is essentially a pokemon copycat and earn money as well. And the money earned is no joke one person from the Philippines bought two houses with the money they earned playing Axie. When that story broke out the Filipino tax agency publicly stated that all Axie infinity players must report their income immediately.
NFTs are not merely art they can be part of a broader virtual economy a video game or any other system where virtual items serve an actual purpose. Like in Axie infinity you can buy and sell different Axies or you can also earn SLP by using Axie’s in a battle. Collectibles grow in value as long as they belong to an interested community. So why not improve Nfts so they can generate capital as well? Defi grew rapidly by helping investors earn money on existing crypto investments. There’s no doubt that NFTs can do the same.
Time for a quick quiz because who doesn’t like time traveling back to high school first off?
1- What is an NFT?
A- A fungible token that crypto investors can make a lot of money on.
B- A non-fungible token that is unique and cannot be exchanged with other tokens.
C- A new cryptocurrency.
A- Special NFTs that have utility in a video game and produce capital.
B- NFTs that provide yields.
C- Nfts that represent a video game.
3- What in-game currency and crypto assets do Axie Infinity users earn as a reward?
A- AXS token
C- Slp token.
Answer the asked questions in a comment below.