Home News AXS Crypto Gaming Token Skyrockets 40% Before $64 Million Release

James Carter

23 Jan 2023

AXS Crypto Gaming Token Skyrockets 40% Before $64 Million Release

Later today, about 4.8 million AXS tokens, equal to 1.8% of the entire supply of the cryptocurrency, will be made available to the public.

The value of the AXS cryptocurrency, which is issued by the play-to-earn business Axie Infinity, is on the rise despite the imminent release of tokens worth millions of dollars.

According to data provided by CoinDesk, the price of AXS has increased by more than forty percent in the last twenty-four hours, reaching a high not seen in four months.


According to Coinalyze, the dollar value locked in the number of open contracts for AXS-related perpetual futures has gone up by 156% in the last 24 hours, bringing the total to $104 million. A price rally that occurs, along with an increase in open interest, is indicative of the entry of new money on the bullish side of the market.

Axie Infinity is a blockchain-based trading and combat game that lets players collect, breed, raise, battle, and trade token-based creatures known as “axies.” These creatures are digitized as non-fungible tokens. Axie Infinity also allows players to collect, breed, and battle against other players axies (NFTs). Shards of Axie Infinity, often known as AXS, are a form of governance token used in the Axie Infinity game.


According to the data source TokenUnlocks, later on, Monday, there will be a release of approximately 4.8 million AXS tokens, which will be worth roughly $64 million at the current price of $13.31 each. This represents 1.8% of the total supply of a cryptocurrency, which is 270 million. The latest positive market action may seem confusing because of this.

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Unlocks are thought of as negative catalysts because they reduce the need for liquidity in a market and make it easier for investors to lock in profits. Tokens are locked up to avoid significant bag holders, who are typically early investors but can also be members of the project’s staff, from selling all of their coins at once and triggering a price drop in the cryptocurrency market.


Flex Hartmann, the managing partner of cryptocurrency investment firm Hartmann Capital, says that the strange rally is due to the hope that the Axie team will announce a positive catalyst to counteract the negative effect of the token unlock. The token will allow holders of the Axie cryptocurrency to access their tokens.


“Over the course of the previous year and a half, crypto teams have begun to establish a track record of delaying important disclosures until unlock days. According to the frequency with which it has occurred, many now anticipate a bullish trigger surrounding unlocks “Hartmann told CoinDesk.


A similar observation was made not too long ago by the publication Unlocks Calendar on Substack.


On January 14, Unlocks Calendar tweeted, “As we experience great market momentum, teams with future unlocks will reveal excellent news that they withheld for months while the market was dead.” The objective would be to “ride positive market moves to inflate the price right before unlocks,” according to one such strategy.


AXS is one of the several cryptocurrencies that is making significant headway in preparation for the token unlock. Even though the cryptocurrency that is traded on the decentralized perpetual-focused exchange dYdX is about to be unlocked on February 2, its value has gone up by 64% this month, making it more valuable than the market leaders, bitcoin and ether.

Also Read:  The Smart Way to Buy Bitcoin: Avoiding Market Price

Additionally, the value of APT, which is the native cryptocurrency of the layer one blockchain Aptos, increased by forty percent in the week preceding the release of its token on January 12. Since then, the price of the cryptocurrency has more than doubled, reaching $13.


“The market has reached such a state of complacency that consumers buy with the hope of gaining access to new information.,” said Hartmann, labeling the new trend of revealing positive news along with the token unlocks as immoral. “People now buy as a reflex in anticipation of unlock news since the market has grown so competitive.”


According to an interview that Hartmann gave to CoinDesk, he said, “I regard this new trend as quite immoral as you are creating a buzz to help your investors unload on retail [investors] who are uninformed of things like unlocks.”


Since the beginning of time, there have been observers who argue that the impact of unlocking exaggerates the currently dominant market trend. “Unlocking a significant number of tokens at once is a complicated event that involves the psychology of the market. To put it another way, huge unlocks have the potential to act as bullish catalysts in bull markets and bearish catalysts in negative markets.

They free up liquidity in order to maintain the currently observed trend, “In a tweet published in April 2021, Chris Burniske, co-founder of the New York-based crypto-focused venture firm Placeholder, offered an explanation for the bullish reactions to token unlocks that had taken place earlier in 2021.

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