The issues Axie Infinity needs to address to avoid game over

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Here at Tech in Asia, we’ve spilled much digital ink over the last week talking about Axie Infinity. Not only has the blockchain-based, play-to-earn game taken off over the last year, but it has also become a source of income for many players, particularly those whose livelihoods were affected by the Covid-19 pandemic.

It’s come under scrutiny as well, with some saying that the game is a Ponzi scheme. While not all criticisms that have been leveled against Axie Infinity are accurate, the game faces some problems that its developers have to tackle.

Today we look at,

• The real challenges facing Axie Infinity
• What fresh funding can do for this customer engagement startup
• Other newsy highlights such as Square’s purchase of AfterPay and a few new entrants into the unicorn club

PREMIUM SUMMARY

The issues Axie Infinity needs to solve if it’s aiming for eternity

Much has been said about Axie Infinity, including some not-so-nice things. But there are real challenges that Sky Mavis, the Vietnam-based developer behind the game, will need to address if it plans on being in it for the long haul.

• The problem with renting: Axie Infinity runs a scholarship program that allows “managers” or owners of axies – the in-game digital monsters – to loan them out to “scholars” or players who can’t afford their own, and the parties share the profits under an agreed-upon percentage split. However, there are no formal structures in place to prevent managers and/or scholars from cheating or reneging on their promises.
• Nothing lasts forever: Another concern is how games often have pretty short shelf lives. Given that many players rely on Axie Infinity for income, the developers need to work on the game to ensure that it sticks around in the long run. Still, many are bullish on its prospects.
• Beware the whales: Axie Infinity’s in-game currency – known as small love potions or SLPs – are tokens available for purchase on major cryptocurrency exchanges such as Binance. There are fears that more speculative investors may come in and hoard SLPs, and then attempt to “short” it. However, this is a doomsday scenario that’s unlikely to occur, and Sky Mavis has “a strong team to deal with any serious market manipulations,” according to co-founder and chief operating officer Aleksander Larsen.

Read more: 3 problems that might hinder Axie Infinity’s quest for game immortality

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