During the bear market, AXS, SLP, and the floor price for Axie Infinity NFT's have experienced a significant fall, with SLP experiencing a -99% fall and AXS experiencing around a -90% fall. This data will obviously sound like a rug pull scam project, but is it really a scam, or just a poorly planned project?
Introduction:
For those of you who don't know, Axie Infinity was and still is one of the most popular blockchain game projects. It experienced an all-time high during the last bull market. However, if you invested then, your investment would now be worth almost $0 and the floor price for the NFT's would also be worth almost $0. These factors have led many people speculating that the Axie Infinity team rug pulled or scammed their users.
Rug pull or legit?
I think it is safe to say that Axie Infinity is not a rug pull or anything like that. The Axie Infinity team is still working hard on developing the Axie ecosystem, such as Axie Origins or Axie Homelands. This, to me, is a clear sign of dedication by the Sky Mavis team that they did not give up on Axie Infinity, even during the bear market. As for the prices, I believe that it was simply just poor tokenomics rather than the Sky Mavis team selling their shares. The poor tokenomics were ignored during the bull market, but now it has finally been revealed during the bear market.
What went wrong with the tokenomics and NFT prices?
Axie Infinity always had major flaws in its tokenomics, but it simply did not reveal itself during the bull market. SLP wise, it simply was hyper-inflationary and pumped during the Facebook(Meta) hype. As for AXS, I believe it was a combination of the Facebook(Meta) hype dying down and the introduction to this bear market. For NFT's, however, I think it was the fact that the popularity for NFT's experienced a sharp decline during the past few years.
Axie Infinity is not a scam, but rather, had major tokenomic flaws. These flaws were always present, but not expressed in any sort during the bull market.
