Axie Infinity is an NFT game where you own little creatures called axies and you can earn SLP tokens for breeding the axies and winning the battles with axies.

the SLP token is 97% down from it’s all-time-high and you can buy an axie for even 2$ where the floor price was 500$

1) Economy Fully Dependent on New Users

for a game to be profitable money must come into the ecosystem, this was the reason why axie infinity was a very profitable game in early 2021, since a lot of new users were joining the game at that time. the problem with this structure is the fact that there will be no profit if the amount of the money coming-in is less than the amount that the game pays the players. if you want to play this game you must own 3 NFTs, which is the only source of money that enters the ecosystem

2) Nobody Wants to Play the Game

as I mentioned, players get paid in SLP token and since SLP token is only getting burned when spending that on breeding the axie, there is an inflation risk if nobody wants to spend their SLP on playing the game and everyone wants to sell it in the market-which was the case for SLP token-the token is going to crash in price. the main reason for this was the lack of interesting and entertaining features in the game which makes nobody interested in the game itself, everybody was playing it for money

the company gets a 5% cut from every player that comes in, and all the money comes in from the new players

do the math, for every dollar you make someone has to lose a dollar, also the company gets 5 cents of your earned money

only these numbers are enough to understand that this game was a pyramid scheme that only benefits the company and players who joined the game early, with low NFT prices