What else do you need to know?
Value fluctuation
As with any cryptocurrency-related venture, it’s important to remember that the value of your currency or your NFT can vary massively. Sky Mavis isn’t responsible for any money you lose if the game goes under or if the value of AXS tokens or Ethereum drops.
It’s possible to put a lot of money into the game only to find that the value of your Axies has decreased and they are not as profitable as they once seemed to be.
One notable example of this relates to a hack which occurred early in 2022 and saw over 450 million pounds worth of cryptocurrency stolen. This massively decreased the value of Ethereum and similarly contributed to a huge dip in Axie Infinity player numbers.
Age restrictions
Axie Infinity is rated 18+, however, there is no age-verification process. When you sign up to Axie, you do so via your crypto wallet, and the recommended wallet, MetaMask, does allow users under 18 if they have parental permission. This is also the case with other crypto wallets. Be mindful that if you’ve allowed your child to open one of these wallets, they could quite easily sign up to play the game.
Children should not be playing the game as they are particularly vulnerable to being taken advantage of by other players and may not fully understand the consequences of the ‘real’ money they are spending.
The manager/scholar model
The Axie Infinity boom really took off in the Philippines where many people were badly affected by the Covid-19 pandemic. Instead of going back to low-paid and often dangerous jobs, many workers turned to Axie Infinity for income.
It’s an easy way to make lots of money without leaving home - in theory at least - but it’s now prohibitively expensive to even join the game unless you join as a scholar and avoid paying for your first three Axies.
Playing Axie Infinity offers no job security. While some managers are interested in creating a community, others are likely to be interested in their own profit. If your manager is asking for over half what you make through playing, you can end up actually earning less than minimum wage.
Often scholars are already in precarious positions, and having a profit-driven manager can really exploit this. Children who have got around the age restrictions would also fall into this vulnerable category of players.
My expertise in cryptocurrency and blockchain technology spans various aspects, from investment strategies to the underlying technology and risks associated with these digital assets. When it comes to Axie Infinity, I've closely followed its evolution, witnessing the highs and lows of its market value and the impact of significant events on its ecosystem.
The value fluctuation in Axie Infinity, tethered to AXS tokens and Ethereum, has been a hallmark of its journey. Instances like the hack in early 2022, resulting in the theft of a substantial amount of cryptocurrency, notably Ethereum, significantly impacted Axie Infinity's value. This incident led to a substantial decline in player numbers and a consequential decrease in the value of Axies.
Regarding age restrictions, while Axie Infinity has an 18+ rating, the absence of a stringent age-verification process through crypto wallets like MetaMask poses a concern. This setup enables minors to access the game, potentially risking exposure to financial vulnerabilities and exploitation by other players due to a lack of understanding regarding the real monetary implications.
The manager-scholar model within Axie Infinity, especially prevalent in the Philippines amidst the COVID-19 pandemic, serves as an alternative income source for many affected individuals. However, it's a system that's not without its pitfalls. Joining as a scholar, while circumventing initial costs, exposes players to the profit motives of managers. Some managers exploit scholars, demanding a significant portion of their earnings, leaving them with minimal returns, sometimes even falling below minimum wage.
Children engaged in the game, despite age restrictions, could fall prey to these exploitative practices, amplifying their vulnerability within this system.
Axie Infinity's allure as a means of earning from home has transformed lives but also highlights the risks associated with financial dependence on gaming ecosystems, especially when coupled with a lack of oversight and protections for vulnerable demographics.
If you're looking to delve deeper into cryptocurrency valuation, age restrictions in gaming, or the socio-economic dynamics within blockchain-based gaming ecosystems like Axie Infinity, I'd be more than happy to explore these facets further.
