Group 04 - Axie Infinity Shard (AXS) PDF

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FOREIGN TRADE UNIVERSITY SCHOOL OF BUSINESS AND INTERNATIONAL ECONOMICS --------***-------

CRYPTOCURRENCY ASSIGNMENT

AXIE INFINITY SHARDS (AXS) Class: TCHE303(GD1-HK1-2021).1

Group: 04

Instructor: Mrs. Tran Thi Minh Tram

No.

Full Name

Student ID

1

Vũ Hoàng Anh

1811150056

2

Doãn Thu Trang

1811150129

3

Lương Thuỳ Linh

1811150091

4

Lê Thu Nga

1810150022

5

Vũ Duy Đồng

1911150741

6

Phạm Ngọc Tân

1811150120

7

Bùi Gia Bách

1811150058

Ha Noi, August 2021

TABLE OF CONTENTS OVERVIEW OF AXS ............................................................................................3

I.

1. About AXS token ..................................................................................................3 2. Characteristics .......................................................................................................4 II.

HISTORY .............................................................................................................4

III.

AXS TOKEN USE CASES .................................................................................5

1. Games ....................................................................................................................5 2. Governance ............................................................................................................5 3. Staking ...................................................................................................................6 IV.

POPULARITY .....................................................................................................6

V.

PRICE & EXCHANGE ......................................................................................7

REFERENCES ..............................................................................................................9

LIST OF FIGURES Figure I-1. Axie Infinity ................................................................................................3 Figure I-2. AXS complete release schedule .................................................................4 Figure III-1. Summary of AXS use cases ....................................................................6 Figure IV-1. The number of AXS holding addresses from 05/2021 to 08/2021 .......7 Figure V-1. AXS prices from 04/11/2020 to 14/08/2021 .............................................7

AXIE INFINITY SHARD (AXS) Nowadays, blockchain technology and gaming are two rapidly growing industries that are set to converge in more direct ways. The play-to-earn model has lent itself efficiently to blockchain-based games that enable true digital asset ownership through non-fungible token (NFTs). Although this model is possible within traditional monetary systems, it becomes harder to facilitate without the use of blockchain, cryptocurrencies or NFTs. In this report, our group would present a newly-introduced cryptocurrency used within the model- AXS token. I. OVERVIEW OF AXS 1. About AXS token The blockchain community has witnessed the rise of non-fungible tokens within play-to-earn gaming models starting with CryptoKitties in 2017. Now, it is the turn for AXS to catch eyes. Axie Infinity Shard (AXS) is the native crypto-currency of Axie Infinity. It is a blockchain-based game launched by a Vietnamese developer, Sky Mavis in 2018. The company has announced the governing token of the game, which is AXS in 2020. The Axie crypto game allows players to interact in a virtual ecosystem and receive tokens, either AXS or SLP, as rewards for their skills and contribution to the game’s universe. In terms of building platforms, the AXS token is developed on the Ethereum blockchain. Better to know, it is an open-source, blockchain-based and decentralized platform released in 2015. Like Bitcoin, Ethereum’s function is to promote digital crypto-currency transactions. Apart from that, it also allows creating smart contracts and decentralized applications (DApps), the network’s two USPs. Figure I-1. Axie Infinity

(Source: Decrypt crypto-currency with Nami explained)

2. Characteristics ● Token Name: AXS Token. ● Ticker: AXS. ● Blockchain: Ethereum. ● Token Standard: ERC-20. ● Contract: 0xf5d669627376ebd411e34b98f19c868c8aba5ada ● Token type: Utility. Figure I-2. AXS complete release schedule

(Source: Capital.com) The ecosystem’s AXS token has a maximum supply of 270 million tokens, of which 50% is allocated to in-game rewards and staking. More AXS will be unlocked in the market, in accordance with a 65-months schedule. Another 8% is reserved for developing and growing the Axie community, while 20% is kept aside for the development team. Additionally, a 7% fraction is set aside for advisors, and 15% for public and private token sales. II. HISTORY Axie Infinity Shards (AXS) was first unlocked on November 4th, 2020 with the initial circulating supply of 59,985,000 AXS, accounting for 22.22% of the total supply. This figure was allocated as follows: 2,160,000 AXS for private sale; 29,700,000 AXS

for public sale; 4,725,000 AXS for gaming issuance; 15,300,000 AXS for the team and advisors and 8,100,000 AXS for ecosystem fund. In terms of public sale, AXS launched its IEO sale on Binance Launchpad, being its 17th project. The token sale followed a lottery format at the price of 0.1 USD/ AXS. The maximum number of winning lottery tickets was 14,850 and allocation per winning ticket was 2,000 AXS. Up to present, Axie Infinity has not unlocked all of AXS tokens and it is expected that the total AXS supply will be unlocked in 2026. According to the figures on CoinMarketCap at 10:10PM August 14th, 2021, the live AXS price is 68.08 USD with a 24-hour trading volume of 1,149,153,902 USD. Its current CoinMarketCap ranking is #34, with a live market capital of 4,146,714,747 USD. The circulating supply of AXS is 60,907,500 tokens and it is now traded in approximately 30 exchange platforms. III.

AXS TOKEN USE CASES

1. Games Axie Infinity follows a play-to-earn model, like Animal crossing, the social simulation video game series created by Nintendo. Players can earn and spend AXS tokens as they progress through various games within the Axie universe and through user generated content initiatives. There are animated characters called Axies, which players will collect and treat as pets. Axies can have different traits of different rarities and can be bred by spending SLP tokens to create even more unique Axies. Newcomers need at least three Axies to join the game, which at current prices amounts to over $1000. Every Axie is a non-fungible token (NFT) with different attributes. To start playing Axie Infinity, players need to follow 6 general steps: ● Buy ETH from a cryptocurrency exchange such as Binance. ● Create a MetaMask wallet and deposit the ETH into it. ● Create a Ronin Wallet account and deposit the ETH into it using Ronin Bridge. ● Go to Axie Marketplace and login using the Ronin Wallet. ● Buy at least 3 Axies. Those already in the game are motivated to breed new characters and profit from their sale. ● Download the Axie Infinity 2. Governance AXS token holders have the right to vote on key governance proposals such as

the development of the platform or distribution of funds. It is the future intention of Axie Infinity to become a fully decentralised organisation that is governed by only players of the game. 3. Staking In the early of 2021, AXS token holders can also participate in staking / betting their AXS for rewards thanks to the activation of Community Treasury. Also, the Community Treasury collects 100% of all transaction fees that take place on the platform. By staking AXS tokens and supporting the ecosystem, AXS token holders can earn a share of the transaction fees collected. It incentivises community support and further grows the Axie Infinity ecosystem. All rewards distributed will be locked in a smart contract for 1 year. Figure III-1. Summary of AXS use cases

(Source: Axie Infinity - Whiteboard) IV.POPULARITY As can be seen from Figure 4, AXS has gained substantial popularity with the boom of Axie Infinity. From 4,887 on May 24th, 2021, the total number of AXS holding addresses has increased fivefold over the last 3 months, reaching 21,978 addresses on August 14th, 2021. During this period, the most impressive increase recorded was on

July 14th, 2021, when the number of holding addresses nearly doubled in just one day. However, the distribution of AXS is quite concentrated among the top holders. It is reported that the top 10 holders account for around 96% of the total AXS amount, which means the remaining 4% is distributed among over 21,950 holders. Figure IV-1. The number of AXS holding addresses from 05/2021 to 08/2021

(Source: CoinMarketCap) V. PRICE & EXCHANGE For the time being, AXS can be bought at a good number of cryptocurrency exchanges either with fiat money at a spot rate (USD, CAD, AUD, EUR, GBP etc) or through other cryptos (BTC, ETH etc). In the first way, users can buy AXS using money from their digital wallets. AXS is an ERC-20 token by Ethereum so that it can be saved in wallets that support this standard of Ethereum such as Myetherwallet, imToken, Frontier, Metamask etc. Figure V-1. AXS prices from 04/11/2020 to 14/08/2021

(Source: CoinMarketCap)

In terms of prices, it can be easily seen from Figure 5 that over the first 3 months from the issuance of AXS, the price stayed steadily at less than 1 USD/ AXS. Until March, 2021, there was a gradual increase in AXS price, but this figure was still low, fluctuating at around 7 USD/ AXS. However, it was not until July, 2021 that the AXS price skyrocketed. The first impressive increase was recorded from July 21st to July 24th, when the price increased threefold from nearly 15 USD to nearly 45 USD. And August 10th saw the most significant increase in AXS price from 43 USD to approximately 70 USD in less than 24 hours. This sudden price increase was the result of some changes in the rules of Axie Infinity which boosted the demand for both AXS and SLP. Generally speaking, in the next period, Axie Infinity is expected to continue increasing in its popularity as well as revenues. Hence, the price of AXS is also expected to increase in the last quarter of 2021.

REFERENCES 1. Coin68.com, 2021. Sau thay đổi giảm phần thưởng ngày, Axie Infinity (AXS) đã tăng đến 71,8%. [Online] Available at: https://coin68.com/sau-thay-doi-giamphan-thuong-ngay-axie-infinity-axs-da-tang-den-718/ [Accessed 14 August 2021] 2. Bitcoincuatoi.com, 2021. Tổng quan về token AXS và SLP của game Axie Infinity. [Online] Available at: https://bitcoincuatoi.com/tong-quan-ve-token-axs-va-slp-cua-game-axieinfinity/#2-axie-infinity-shard-axs-là-gì- [Accessed 13 August 2021] 3. Binance, 2020. Introducing the Axie Infinity (AXS) Token Sale on Binance Launchpad. [Online] Available at: https://www.binance.com/en/support/announcement/1c097191f01345b090018ff cd30e445c [Accessed 14 August 2021] 4. Axie Infinity White Paper n.d. Allocations and Unlock schedule. Available at: https://whitepaper.axieinfinity.com/axs/allocations-and-unlock [Accessed 14 August 2021] 5. CoinMarketCap n.d. Axie Infinity. Available at: https://coinmarketcap.com/currencies/axie-infinity/ [Accessed 14 August 2021] 6. CoinTelegraph, 2021. Yield Guild Games doubles down on the play-to-earn model with a $4M funding round. Available at: https://cointelegraph.com/news/yield-guild-games-doubles-down-on-play-toearn-model-with-4m-funding-round [Accessed 13 August 2021] 7. Ambcryto.com, 2021. NFT Gaming: The Rise of Axie Infinity. [Online] Available at: https://ambcrypto.com/nft-gaming-the-rise-of-axie-infinity/ [Accessed 13 August 2021]...