Axie Infinity, an ethereum-based game, has seen a boom in popularity and revenue.
An ethereum-based game called Axie Infinity has pulled in millions of real-world dollars for the company that created it, with people mostly from developing countries playing with the game's colorful and competitive creatures to try to earn some cash for themselves.
Inspired by Pokémon, the Axie Infinity game is experiencing a surge in players seeking to participate in its play-to-earn model. Its growing popularity is part of the reason Sky Mavis, the game's creator, has seen a jump in revenue. The Vietnam-based game studio has logged $485 million in revenue since July, dwarfing the $21 million it had made since launching in 2018, according to a report this week by Bloomberg. Daily active users reached more than 1 million in August.
Two crypto analysts told Insider's Vicky Ge Huang about three ways to cash in Axie's growth.
Players can earn two types of tokens - Smooth Love Potions and Axie Infinity Shards - through breeding, raising and battling virtual creatures called Axies. The SLP and AXS tokens can be used in the game or can be sold on a crypto exchange. Axies are non-fungible tokens, or NFTs, that can be sold or purchased.
The Bloomberg report said most players are based in developing countries whose economies were hit hard by the COVID-19 pandemic, including the Philippines, Brazil and Venezuela. In "the pursuit of a new income stream during the COVID pandemic," thousands of people from developing countries have been playing the game, according to a white paper updated in December on Axie Infinity's website.
A jump in the price of AXS has opened the door for people in struggling economies to earn some money. Demand from the Philippines climbed enough for crypto exchange Binance to offer an SLP-peso trade, the report said, and there's also the lure of cryptocurrencies in places where local currencies are weak.
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