Today, it is anticipated that the popular cryptocurrency game Axie Infinity would issue approximately 21.543 million tokens to early investors and advisers.
Coingecko data indicates that the AXS token, which underpins the Axie Infinity gaming environment, hit a fresh 52-week low of $8.58 earlier today. AXS is the greatest weekly loser among the top 100 cryptocurrencies by market capitalization over the previous week, having lost approximately 22% of its value.
The token’s market valuation decreased by about $200 million last week. The current market value of AXS is $890 million, down from $1.13 billion seven days ago.
The past week has seen the liquidation of AXS futures holdings worth $5,1 million, according to data from Coinglass.
Approximately 37% of these liquidations were short positions, with the remainder coming from blown-out long positions.
AXS fell 93.2% over the past year and 94.8% from its all-time high of $164.90 in November 2021 due to the week’s negative performance. Coingecko indicates that the damage has increased by about 34.6% during the past month. Within the previous thirty days, the value of the coin has decreased by fifty percent.
As of the time of writing, AXS trades for approximately $8.62 and is the 61st-largest cryptocurrency by market capitalization.
Top cryptocurrencies, especially Bitcoin and Ethereum, held their ground with minor weekly increases of 0.6% and 3%, respectively; AXS’s negative connection with market momentum persists.
Concerns that private investors may sell their holdings following today’s scheduled unlock and distribution are likely the driving cause behind AXS’s precipitous decline.
However according data from Token Unlocks, Axie’s private investors and advisers will receive about 21.543 million AXS tokens (7.979% of total supply) valued slightly more than $185.7 million in less than 15 hours.
According to Axie’s Whitepaper, private investors are projected to get 2.16 million AXS tokens out of a total supply of 21.543 million. According to Aleksander Leonard Larsen, the COO of Axie Infinity and Sky Mavis, this will also be the final unlock.
The developer of Axie, Sky Mavis, “will not sell a single token” for the next unlock, he emphasized. The firm serves as a consultant.
In 2020, these investors acquired AXS for $0.08 each. If they sell today, they will secure a massive 10,650% profit.
In addition to the token unlock, declining user development has certainly contributed to AXS’ recent adverse price movement.
Axie’s player count has decreased from 2.78 million at the beginning of the year to slightly over 701,447 now, according to data from active players. In the early phases of the majority of cryptocurrency initiatives, tokens are assigned to investors and advisers, but not distributed until the launch.
However, they are vesting and divided over time to lessen the selling pressure of the token.
The process is based on the premise that during this vesting period, the market for the token will mature and this big token unlocking will not significantly affect the token’s price.
Unfortunately, this does not appear to be the case for Axie Infinity, the most popular play-to-earn game in the crypto community.
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