Axie Infinity (AXS) token is down 21.6% in the past week, and 34.3% in the past month marking a difficult period for the token.
One of the major contributors to this decline is that millions of vested tokens are about to become unlocked, sparking fears that the tokens will be dumped on the market.
Axie Infinity AXS
Axie Infinity and its token AXS have endured a tough time of late. AXS has performed poorly over the last month with the price down by 34.3% over the period. The macro picture is no more favorable with the coin down 94.8% from its all-time high in November of last year.
Around 22 million AXS tokens are set to become unlocked on Monday, Oct. 24.
According to Chief Operating Officer Aleksander Larsen that unlock period has been the subject of a great amount of misinformation. The point that Larsen attempted to make is that unlocked tokens do not necessarily equate to circulating tokens.
“With the upcoming $AXS token unlock there is a lot of misinformation that should be clarified. First, tokens unlocked are not the same as tokens in circulation,” said Larsen on Twitter on Thursday. “According to the unlock schedule, there could be 151M in the market, but there are only 102M in circulation. How? Most of the unlocked tokens from staking, p2e, ecosystem fund, and advisors have to this day been left in the vesting contract or multi-sigs… Unlocked tokens =/ circulating tokens.”
If Larson is to be believed, the drop in AXS could be a sell-the-news type event, where the prediction of a token dump has unjustly dented the price.
That said, data from DappRadar shows that interactions with the game have also been down. At the same time whales have been purchasing AXS potentially adding to fears of a dump in the future.
According to WhaleStats AXS is “now on top 10 purchased tokens among 500 biggest #ETH whales in the last 24hr”
Crumbs of comfort
Axie Infinity hasn’t had to look far to find bad news of late, but there have been some small crumbs of comfort.
In September the company managed to recover $30 million worth of crypto stolen from them in the Ronin Bridge attack. Even so, this only represented a fraction of the total $620 million lost from the company.
Last month BeInCrypto spoke with Aleksander Larsen to find out how the company plans to take crypto gaming by storm again.
For Be[In]Crypto’s latest Bitcoin (BTC) analysis, click here
BeInCrypto has reached out to company or individual involved in the story to get an official statement about the recent developments, but it has yet to hear back.