3 Reasons Why Axie Infinity (AXS) Price Is Tanking
- Axie Infinity (AXS) has performed poorly lately.
- Twenty-two million AXS tokens were unlocked on Monday, raising fears of a sell-off.
- COO Aleksander Larsen believes these fears are unfounded.
The Axie Infinity (AXS) token is down 21.6% in the last week and 34.3% in the previous month, marking a difficult time for the token. One of the main reasons for this drop is that millions of purchased tickets are about to be unlocked, raising fears that the tokens will be dumped on the market.
Axie Infinity AXS
Axie Infinity and its AXS token have had a rough time lately. AXS has underperformed over the past month, falling 34.3%. It was at an all-time high in November last year.
Approximately 22 million AXS tokens will be unlocked on Monday, October 24. According to COO Aleksander Larsen, this unlock period has been the subject of much misinformation. Larsen was trying to make that unlocked tokens don’t necessarily equate to tokens in circulation. “With the upcoming $AXS token unlock, much misinformation needs to be clarified.
First, unlocked tokens
Are not the same as tokens in circulation,” Larsen said on Twitter on Thursday. “According to the unlock schedule, there might be 151 million on the market, but there are only 102 million in circulation. As? Unlocked tokens from staking, p2e, ecosystem funds, and advisors have so far been left in the allocation contract or multi-sigs… unlocked tickets =/ Tokens in circulation.
If Larson is to be believed, the decline in AXS could be a sell-the-news type event, where the prediction of a token dump unduly depressed the price. However, data from DappRadar shows that interactions with the game have also decreased. At the same time, whales have bought AXS, which could raise fears of a future landfill. According to WhaleStats, AXS is “now among the top 10 most purchased tokens among the 500 largest #ETH whales in the last 24 hours.”
Crumbs of comfort
Axie Infinity hasn’t had to look far for bad news lately, but there have been a few small consolations. In September, the company recovered $30 million worth of crypto stolen from them in the Ronin Bridge attack. Still, the company lost only a fraction of the total $620 million. Last month, BeInCrypto spoke to Aleksander Larsen to find out how the company plans to take crypto games by storm again.