A Billion-Dollar Crypto Gaming Startup Promised Riches and Delivered Disaster

The most optimistic scenario for Axie Infinity, the absolute ceiling, seems to be $3.7 billion. Right now, there are 60 million AXS tokens trading for $77 a piece. At that price, buying every token would cost about $4.5 billion. $4.5 billion sale price for a business worth, in the best possible scenario, $3.7 billion. Even if Axie Infinity becomes ... See more

Cultural DAOs and Gaming Guilds Although DeFi protocols have grown exponentially since financial incentives were developed, DAOs with token distribution models independent of usage and participation (unlike DeFi DAOs) are on the rise. I assisted in creating a commemorative video for Uniswap V3 by pplpleasr, née Emily Yang. Several DeFi developers a... See more

The interesting thing about Axie Infinity is that, just like Ponzi and Madoff, it has a fundamentally unsustainable economic model that depends on inflows from new players to fund payouts to existing players. But here’s the weird, mind-bending part of it: everybody knows! The team knows, their investors know, ordinary players know—and they talk abo... See more

Axie’s economy has two tokens—two in-game currencies that underpin the Axie economy. The first is Axie Infinity Shards, or AXS, which is Axie’s governance token.

However, an increasing number of crypto assets are fundamental, not speculative, in nature. Blockchain technology is being used to build real businesses - businesses that generate cash flow and can be valued on the basis of future cash flow. The rest of this post is dedicated to doing just that: valuing the Axie Infinity Universe, a blockchain-base... See more