Popular metaverse coin project Axie Infinity is down 22% over the week amid ‘Unlock’ fears. Meanwhile, Leonard Larsen, COO of Axie Infinity and Sky Mavis, made a statement. Larsen noted that Sky Mavis will not be selling tokens in the upcoming Unlock transaction.
Axie Infinity (AXS) enters the club of top losers
cryptocoin.comAs you follow, the popular metaverse coin project Axie Infinity (AXS) recorded a 52-week low at $8.58 earlier today. On a weekly basis, AXS lost about 22% of its value. It has also been the biggest loser among the top 100 cryptocurrencies in the past seven days.
A total of $5.1 million worth of AXS futures positions were liquidated last week, according to data from Coinglass. Roughly 37% of these liquidations were short positions, with the rest coming from long positions.
The bearish performance of the week pulled AXS down 93.2% compared to last year. It also pushed down 94.8% from the all-time high of $164.90 in November 2021. The damage got worse in the last month. Metaverse coin value has halved in the last 30 days.
What lies behind the decline of the Metaverse coin project?
The primary driving force behind AXS’s downfall is likely today’s planned ‘Unlock’ event. Because it is feared that private investors will sell their assets following this distribution. According to Token Unlocks data, Axie’s private investors and advisors will receive approximately 21,543 million AXS tokens (7,979% of the total supply) in less than 15 hours, worth just over $185.7 million.
According to Axie’s Whitepaper, out of 21,543 million AXS, private investors will receive 2.16 million AXS tokens. This will also be the final unlock, according to Axie Infinity COO and Sky Mavis COO, Aleksander Leonard Larsen.
Larsen added that Sky Mavis, the game studio behind Axie, will “not sell a single token” during the upcoming ‘Unlock’. The firm has a consulting role. These investors purchased AXS for $0.08 in 2020. If they sell today, they will earn as high as 10.650% on the ledgers.
The number of users of the Metaverse coin project is falling
Alongside the unlock thing, the declining user growth probably contributed to AXS’s recent downtrend. According to data from active players, Axie’s is struggling to grow. However, the number of players has dropped from 2.78 million at the beginning of the year to just over 701,447 today.
In the early stages of most crypto projects, tokens are allocated to investors and advisors. However, they will not be distributed at launch. Instead, they are earned and spread over time to reduce the selling pressure of the token. The mechanism operates under the assumption that during this qualifying period, the token market should mature and this major ‘Unlock’ event will not further affect the price of the token. Unfortunately, that doesn’t seem to be the case for crypto’s favorite play-to-earn game, Axie Infinity.
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