Did you know how a game made many people in the Philippines quit their jobs, and then the money later vanished?
In 2021, Axie Infinity became famous worldwide. People played and earned money, and AXS, its token, reached about $165 in November 2021. It has since fallen sharply from that level, as far as I know. Here are the reasons.
First, the "play-to-earn" system required you to buy Axies before you could start playing. When prices were high, many people took on debt to get in, expecting to earn their money back.
Second, players earned another token called SLP. But more SLP was being created than people wanted, so its price fell sharply. The money earned from the game dropped until it could no longer cover what had been invested.
Third, in March 2022, the Ronin Bridge, which Axie uses, was hacked. About $600 million was stolen. US authorities later linked it to North Korea's Lazarus hacking group. This shook people's trust.
Fourth, new players stopped coming in, and some old ones left. When no new money is entering, a system that depends on it collapses.
Still, the Axie team continues to update the game, and there are still players. But it is not known whether it will return to its former strength.
What I learned: if the money you earn depends on new people joining, the system can collapse when the inflow stops. And a good game is one people will keep playing even without earning money.
What about you? Have you ever tried play-to-earn? Did it benefit you or not? I'd love to hear your story in the comments.
This is not advice to buy or sell.
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