AXS has been making noise recently thanks to its double-digit percentage gain over the last week following the announcement of the development team that the project is moving along to the next update that will bring more decentralization to the game and its community which should, in theory, improve tokenomics and create new incentives for players.
The current price of the token is about $8.6 which is lower that the massive spike that occurred on Monday, but it is still 40% more compared to the November 22 low.
AXS looks promising and dangerous
Experts believe that the sudden rally came out of the blue and does not have any significant foundation except for the announcement from the development team.
If the latter is indeed the main driver of this rally, it will die down quickly. The absence of any real cash flow in the project and the reduction in interest from players make it harder for investors to justify pumping money into unreliable tokenomics with developers changing the rules of their economy regularly.
AXS has been changing hands quite rapidly and managed to reach a respectable volume on Binance, but the skeptical majority of experts still think that it is just an event trigger that will allow smart retail traders to short the price of the native Axie Infinity token.
Some people speculate that the rally is the direct result of market manipulation and the desire of some shady players to game the market.
We do not give financial advice but you should be careful when dealing with any sudden changes in prices in the market. If you did not catch the wind earlier this week, you should take a couple of days to contemplate the immediate future of AXS and compare it to the long-term prospects of the game.
Axie Infinity must change
New additions to the governance system and updates make the game perpetually engaging, but the economy must be really good to ensure that players and investors feel that Axie Infinity has a future worthy of investing in.
So far, we did not see any revolutionary changes in the foundation of the game and any strange price movements should be taken with a grain of salt.
James Thompson