Some investors sometimes overlook the importance, but above all the consequences linked to the tokenomics of a project. This management of the distribution and quantity of a cryptocurrency that can change everything, in terms of objective as well as effective interest. With calendars to take into account so as not to be surprised by sales pressure, however predictable. As in the case of the project Axie Infinitywhose the AXS cryptocurrency may well experience some turbulence in the next few days.
The project Axie Infinity is certainly the best known and emblematic of the brand new scene of the play to earn. A new paradigm related to the gaming sector that rewards its players with a native cryptocurrency. But an economic model that is not always easy to maintain, vis-à-visa tokenomics that is struggling to maintain itself when the frenzy is no longer there.
A complicated situation which forced the managers of this project to review their copy in order to be part of a more sustainable “play AND earn” vision in a bear market period. But it may well be that certain options put in place during the creation of Axie Infinity will once again spoil the party. With possible downward movements to be expected for its AXS cryptocurrency.
A drop to be expected for the AXS cryptocurrency?
During the launch of the Axie Infinity project, some investors placed money in the form of what is called a period of acquisition (vesting). That’s to say a purchase of AXS cryptocurrency blocked for a pre-determined period, in order to avoid a massive and problematic spill during significant rises. A situation which concerns a fairly large amount since it is a question in the present case of 21.5 million units, i.e. almost 8% of the total supply (supply). That is a jackpot of nearly $190 million at the current price, which should finally be released… on October 26th.
Visible data on the TokenUnlocks site which exposes this situation in the form of a fairly explicit graph. With a countdown timer that is based on Ronin (RON) blockchain transaction block numbers. That’s to say an unblocking which should take place in just over 3 days and 15 hours at the time of writing this article. Tick tock…
A step which concerns, for almost half of this quantity of AXS cryptocurrencies, the members of the development team of the Axie Infinity project (about 50 million dollars). But also its advisers (about $20 million) and its first-time investors in the context of an initial sale transaction (about $15 million). And the main problem is that these AXS cryptocurrency holders may well decide to sell. Which would inevitably involve – and depending on the quantity involved – strong downward pressure.
Knowing that the other half of these digital funds (approximately 11 million AXS) is intended for future in-game rewards and ecosystem war chests. Which is to say that they cannot be dumped on the market. And the real question is whether the -13% drop recorded by the AXS cryptocurrency over the last 24 hours is already a sign that this information has been taken into account. Because there is no doubt that investors will try to price this data before the end of the countdown.
The play-to-earn gaming sector offers many interesting opportunities. Reason why you should not wait too long before registering on the FTX platform to take advantage of this trend. This while at the same time benefiting from a lifetime reduction on your trading fees (commercial link).