# Why Axie Infinity Is Almost Dead? What Happened?

By [crypto-kingpin.eth](https://paragraph.com/@crypto-kingpin-eth) · 2023-03-16

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### What is Axie Infinity?

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$

### What Caused it to Crash?

**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**

### take a look at it this way

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 cent**s 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

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*Originally published on [crypto-kingpin.eth](https://paragraph.com/@crypto-kingpin-eth/why-axie-infinity-is-almost-dead-what-happened)*