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29 Aug 2021
Axie Infinity Has Made $485 Million in Revenue since July
The Index Today
A game called Axie Infinity has been attracting millions of dollars from players from developing countries. The ethereum-based game allows players to compete and earn money through the process.
Axie Infinity gets its inspiration from Pokémon and employs a play-to-earn model, bringing in players from all across the world.
The games creator, Sky Mavis has logged $485 million in revenue since July, exceeding the initial money it made after its launch in 2018 which was only $21 million. The company reached over 1 million active users in August alone.
Players in the game can earn 2 types of non-fungible tokens which can be then sold on a crypto exchange. These two tokens are called Smooth Love Potions (SLP) and Axie Infinity Shards (AXS).
Most of the players come from developing nations that suffered hard due to the pandemic. Top countries include the Philippines, Venezuela, and Brazil. Many people from these countries started playing Axie Infinity in hopes of making extra cash to help them survive.
The demand for the game increased so much in the Philippines that crypto exchange Binance offered an SLP-Peso trade. Cryptocurrencies seem to be growing in demand in countries with weak currencies.
Players can get started with a buy-in of $200 per creature. Sponsors can also help people pay for the buy-in in return for a cut of the earnings. This has helped Sky Mavis increase their revenue to a great extent as the company also receives a percentage or cut every time an Axie changes hands or breeds new creatures.
According to Bloomberg reports, a player from Manila, Philippines, earned over 37000 pesos ($732) in the first two weeks. This amount was three times more than his salary in IT which he no longer had due to the pandemic.