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HomeNewsBusinessAXS Tokens from Crypto Game Axie Unlocked, Recipients Transfer $5.7M to Exchanges

AXS Tokens from Crypto Game Axie Unlocked, Recipients Transfer $5.7M to Exchanges

As part of a big $200 million unlocking event, Axie Infinity, the play-to-earn cryptocurrency game that gained unexpected success last year, began releasing previously limited AXS tokens to early investors and insiders.

The date of the token vesting period has been closely watched by cryptocurrency traders, in part because it’s possible that some investors could decide to sell their holdings, which might conceivably cause the price to drop. In order to ensure that they are invested for the long-term and prevent quick sales, vesting refers to the time frame that some investors and insiders must wait before receiving their assets. All is fair play once the vesting time has passed and the tokens have been unlocked.

The unlock came with some unanticipated drama: a quick spike in the cryptocurrency markets that eliminated some traders who had gambled that long-term holders dumping may cause a price decrease. The price increase brought on by the short squeeze may have increased the allure of the market for potential dumpers.

According to blockchain data, six users received a total of 785,334 AXS tokens worth $6.6 million from a wallet identified as “Axie Infinity: Token Vesting.” According to the website TokenUnlock, the recipients were identified as Axie’s advisors and early investors in a private sale round in the middle of 2020.

One of the institutional investors who bought AXS during the private sale was the digital asset management company Arca, which got $4 million in AXS (437,500 tokens) to a wallet connected to the business. Then, based on blockchain data from Etherscan and Nansen, it deposited all the tokens into the cryptocurrency exchange FTX. A request for response from Arca representatives was not immediately reacted to.

In the coming days, 21.5 million AXS (valued $200 million) will be issued. For early investors, advisors, and the development team, some 10 million tokens will be unlocked, which might put the coin under selling pressure.

Blockchain data reveals that another early investor purchased 187,500 AXS tokens for $1.7 million before moving the tokens to Binance, a cryptocurrency market.Coin transfers to exchanges are a sign that these investors may sell their holdings and make a significant profit on their initial investment. Participants in the private sale purchased AXS at 8 cents. Given that the price of the cryptocurrency is currently around $9, they may get an 11,150% return on their initial investment.

According to TokenUnlock, the cryptocurrency investment firms DeFiance Capital and Delphi Digital are eligible to claim $1.5 million (160,000 tokens) and $6.8 million (750,000 tokens), respectively. According to blockchain data, they have not yet received their fair share of tokens.

Blockchain intelligence tool Nansen has identified the owners of the wallet addresses. The price of AXS was expected to fall after the unlocking, as it had in the past, according to cryptocurrency traders.

According to Messari, AXS had one of the poorest performances of all the crypto assets before the unlock, falling 24% in a single week. According to statistics by Coinglass, traders prepared for a further decline by increasing their shorts—bets intended to benefit from an asset’s price decline—and funding rates were disproportionately negative on most exchanges.
However, during a recent market-wide rally, AXS rose 7% over the past 24 hours, surprising shorts. The whiplash unloaded the most short positions in at least three months, totaling $1.6 million.

AXS is trading at $8.99 as of this writing, more than 90% below its prior all-time high from the previous year.

News Summary:

  • AXS Tokens from Crypto Game Axie Unlocked, Recipients Transfer $5.7M to Exchanges
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