Introduction

In the world of cryptocurrency and blockchain, the rise of NFTs (non-fungible tokens) has been both revolutionary and unpredictable. One particular game that captured the attention of many, including myself, was Axie Infinity. In this blog, I will share my personal experience of how I lost 2 million pesos in Axie Infinity, a decision that initially seemed promising but ultimately turned into a costly lesson.

The Early Gamble


My journey with Axie Infinity began when I bought the AXS token at 50 cents. At the time, it felt like a gamble because I thought I might be late to the party. However, my gamble paid off, and I made a significant profit from it. This early success fueled my enthusiasm and motivated me to explore further opportunities within the game.

Investing in NFTs and Helping Scholars


I started investing in Axie Infinity’s NFTs and became involved in their “scholar” program, where I assisted unemployed Filipinos in the Philippines. The concept seemed noble and promising—a way to help individuals earn money while playing a game. The news was full of stories about elderly individuals playing Axie Infinity and earning a livelihood. The creators were proud of their accomplishments and received extensive media coverage.

Early Concerns

Despite the initial excitement, I began noticing concerns within the Axie Infinity ecosystem. One of the most significant concerns was the tokenomics of the SLP (Smooth Love Potion) token. The seemingly unlimited minting of supply without any clear utility raised suspicions, leading some to liken it to a Ponzi scheme. A similar issue arose with the NFTs, as the rapid influx of players resulted in an overwhelming number of tokens being minted. However, I maintained hope that the developers would address these concerns by implementing measures to burn SLP tokens.

Erosion of Trust

My trust in Axie Infinity started to waver when the developers decided to allocate a percentage of the sales profit from NFTs to marketers and influencers. This allocation could have been used to buy and burn SLP tokens, potentially stabilizing the ecosystem. Additionally, I had expected the SLP token to serve as transaction fees for their Ronin network. The diversion of funds and the lack of utility for the SLP token made me question the developers’ intentions.

Sinister Manipulation

What shattered my hopes and led to my substantial loss was the developers’ manipulation of the NFT abilities. They intentionally rendered successful Axies useless in subsequent competitions, forcing players to purchase new NFTs with a chance of winning the current tournament. This cycle repeated multiple times, making it appear as though the developers were deliberately trying to force players into continually buying new NFTs. This practice amounted to stealing money from the players, as they were left with useless assets they couldn’t sell.

The Current State of Axie Infinity

As of now, Axie Infinity’s competitions are dominated by players who consistently achieve high ranks, earning substantial profits. However, the lack of new players entering the game or the competition suggests a bleak future for Axie Infinity. Unless the developers introduce a new game or find a way to attract new players, the game seems to be on a downward trajectory.

The Costly Lesson

Reflecting on my loss, I’ve come to accept it as a very expensive lesson. Thankfully, I diversified my investments, ensuring that my losses in Axie Infinity didn’t wipe out my entire portfolio. This incident reinforced the importance of not putting all our eggs in one basket and reminded me of the volatility and unpredictability of the cryptocurrency and blockchain industry.

The Impact on Filipino Investors

What saddens me most is that many fellow Filipinos also saw Axie Infinity as a promising investment opportunity and invested their hard-earned money, only to end up at a loss. The allure of helping unemployed Filipinos through the “scholar” program and the success stories of elderly individuals earning income fueled their hopes.

However, the unforeseen manipulations and questionable practices within the game shattered those dreams and left many in financial distress.

It is disheartening to witness the negative impact on the Filipino community, especially considering the economic challenges faced by many. The loss incurred in Axie Infinity serves as a stark reminder that not all investments and opportunities are as they seem. It highlights the importance of conducting thorough research, understanding the risks involved, and diversifying investments to mitigate potential losses.

Moving Forward

While my experience with Axie Infinity has been a painful one, I refuse to let it discourage me from exploring new investment opportunities. It is crucial to learn from our mistakes and apply those lessons to future endeavors. The blockchain and cryptocurrency industry continue to evolve, presenting new possibilities and innovations.

As for the loss incurred in Axie Infinity, I will accept it as a costly lesson and a reminder of the need for caution in this ever-changing landscape. I will continue to seek out investments that align with my risk tolerance, conduct thorough due diligence, and diversify my portfolio to safeguard against potential losses.

Conclusion

The journey of investing in Axie Infinity started with excitement and promise but ended in disappointment and financial loss. The initial gamble of buying the AXS token at a low price paid off, leading me to delve deeper into the game and invest in NFTs to support fellow Filipinos. However, the questionable tokenomics, erosion of trust, and manipulative practices within the game turned a hopeful endeavor into a regrettable experience.

While the loss of 2 million pesos is substantial, I consider it a valuable lesson in the volatility and unpredictability of the cryptocurrency market. It serves as a reminder to approach investments with caution, conduct thorough research, and diversify portfolios to mitigate risks. My hope is that others can learn from my experience and avoid similar pitfalls.

Ultimately, the impact of Axie Infinity’s practices on Filipino investors is disheartening. Many individuals, enticed by the promise of financial security and the opportunity to help others, have suffered financial losses. It is my sincere wish that they, too, can learn from these experiences, recover, and continue to pursue investment opportunities that align with their goals and values.

In the end, while Axie Infinity may have led to a significant loss, it is essential to maintain a forward-looking perspective and continue seeking out new opportunities for growth and financial success.


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