To sell or not to sell, that is the question – Invoking Shakespeare to speak crypto probably seems like a bit of a stretch, but the situation of the project Axie Infinity really starting to look like a tragedy. Praised during the last bullrun, the most famous play-to-earn on the market has since been on unfavorable waivers. The team tried hard to restart the machine, but the momentum is not the most encouraging. On the eve of the release of 10 million AXS, thetime to worry for gamers.
Axie Infinity set to release some 10 million AXS tokens
First of all, it is worth remembering what a token unlock or release is in the language of the author of Hamlet. At the genesis of a crypto project, the very first investors will have access to token price blocked at real prices down. The blocking period varies from one project to another. However, the idea is to protect the price for a period of time and prevent first movers from selling as soon as the price goes up. When the time of unlock happens, there is sometimes a massive sale of first-time investors and therefore a fall in price. But that’s in theory.
Regarding Axie Infinity, said lockdown period will end on October 24, according to on-chain data site TokenUnlock. On his side, Aleksander Larsen, chief operating officer of the game developer, advances the date of October 26 based on the number of blocks. In any case, it’s getting closer and we’re talking about 21.5 million tokens which is around $215 million at the current price. That is all the same almost 8% of the total supply released at one time. But, who owns these AXS and why would they sell them?
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What will be the consequences on the price of the AXS?
Also according to TokenUnlock, almost half of these tokens are currently in the possession of the creative team, various advisors or early investors. All for one value estimated at $100 million. The other half is for the operation of the game, namely paying future rewards and staking interest. But, why the hell, all this little world would suddenly and massively sell their AXS ? Just because they have paid 8 cents per token and that, despite the dizzying decline of the last few months, it is now selling for almost 10 dollars. Be a pretty multiply by 125 of his starting bet.
In other words, investment professionals are not going to do sentiment and cash in their capital gain without asking any questions. This is what happened with each unlocking of tokens on Axie Infinity – see illustration above. Moreover, the figures concerning the game are not good and show a certain disinterest of the players. This is how the number of transactions collapsed and the value of the AXS lost 94% in one year, falling from 169 to 10 dollars. All this does not play in favor of the most famous play-to-earn which finds itself at a pivotal moment in its young existence.
Despite calls from the team not to worry, despite the quantified explanations of Aleksander Larsen, we feel the tension on the eve of the event. Especially since Axie Infinity has suffered a regular attack at the end of summer which added doubt to fear. So now it remains to know who will sell and who will not sell. And in what proportion. Let’s end by quoting once again the great William, this great hodler before his time: ” How poor are those who have no patience! »
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