Why could Axie Infinity be an incredible pyramid scam?

In Axie Infinity, new players are buyers and existing players are sellers, so the former pay for the profits of the latter.

There are many crypto games on the Google Play Store, like Mistplay, but recently with the rise of cryptocurrencies we are seeing games appear that allow us to earn digital assets after making an initial investment.

One of the most popular cryptocurrency games around right now is Axie Infinity, a Pokémon-like online social game that uses Ethereum’s blockchain technology and in which players fight little monsters called Axies and, defeating them , earn a token called Smooth Love Poison (SLP) which can be redeemed for cash or reinvested to raise more Axies.

You should know that to start playing this game we need to make an initial investment of around $ 1000 to get our first three Axes.

In fact, recent information suggests that Axie Infinity may be a pyramid scam, and we’ll tell you why.

Here’s why Axie Infinity could be a pyramid scam.

Cryptocurrency specialist MichalK posted an article on the Medium platform in which he explains the main reason he thinks Axie Infinity is, in fact, a pyramid scheme.

According to this cryptocurrency expert, a lot of people are joining this game in the hope of making more money than they invested and, at the moment, this is the case because the number of new players joining each month is higher than the number of current players and this allows users to get their money back in less than two months.

We could say that new players are buyers and current players are sellers and in this way the former pay the profits of the latter, but once the new players get their initial investment back they also become sellers. For this reason, Axie Infinity is a pyramid scheme, because the profits of some are supported by the investments of others.

MichalK assures that, if he continues with this strategy, Axie Infinity will not be able to maintain his balance and his system will collapse just when new users can no longer recover their initial investment.

According to this cryptocurrency specialist, the only solution for Axie Infinity to survive is to start earning income outside of the game itself, for example by subsidizing players with other people’s money, which pay to buy an in-game item without expecting a profit in return.

To achieve this, it could allow certain players to enter without having to purchase Axies, so that they end up buying in-game items to enhance their experience, a strategy very similar to what Fortnite does.

For Latest Updates Follow us on Google News

PREV Hunting accident near Rennes: the motorist hit by a bullet is dead
NEXT Tennis – Switzerland in the semi-finals of the Billie Jean King Cup