The cryptocurrency market is based on innovative and often quite simple rules. And among these, the principle of tokenomics makes it possible to determine the main lines of their distribution, as well as the total number available in the long term (supply). An internal policy decided at the time of their launch and – most of the time – impossible to modify afterwards. All this associated with a logic of more or less effective decentralization. But how to react when an unknown address holds more than 50% of the units in circulation? A problem currently facing Axie Infinity game with his Smooth Love Potion (SLP) token.
The current decline recorded by the cryptocurrency market does not spare any project in this ecosystem. And, at the same time, it allows investors who still have cash to come make “the sales” at unbeatable prices. At least for those who believe that a return to the upside is just a matter of patience. And that the current period is just to position yourself before this deadline.
A situation to be faced Axie Infinity game (AXS), regarding its Smooth Love Potion (SLP) reward token distributed to players based on their results. Because the latter currently points to $0.004 at the time of writing this article. That is, a price divided by 100 since its all-time high just below the $0.40 level in July 2021. A period when the returns generated allowed players to earn a living with this simple activity. But that was before…
Axie Infinity – The address to 22 billion SLP
Because the bear market has been there, as has the fall in interest for play to earn games of which Axie Infinity remains the historical symbol. To the point of forcing its developers to review their copy in order to operate an “economic rebalancing” in the face of a real internal crisis. With the result, the recent implementation of an “Origin” version supposed to make it possible to switch from a play TO earn version to a new play AND earn formula. A change that was not to everyone’s liking. And an economic model which does not seem to make it possible to avoid certain problems such as the appearance of an address holding 22 billion SLP, that is to say more than 55% of its quantity currently available (39.9 billion units). Whoops…
The figure is symbolic, because exceeding the 50% mark is never good in the cryptocurrency sector. Indeed, this border allows for example to operate a 51% attack on any blockchain. Or, as in the present case, take control of the price of a cryptocurrency. Especially if it is unclear who owns these funds and what are the intentions behind this centralization of power in the hands of a single entity (or person). And that’s when things get complicated…
Axie Infinity – Who Does This 22 Billion SLP Belong To?
This problematic situation was brought to light by a certain Michael Benko, Axie Infinity player. The latter having seen a publication on Twitter on July 25 aboutan address holding 22 billion SLP tokens. A mysterious wallet brought to the attention of one of the founders of the game, without further reaction from him. Reason why the assumptions quickly focused on an account held by the game itself. This in order to pay rewards to players, the average of which is currently fixed between 10 and 70 SLP per day since the last update.
The problem ? This address does not belong to Axie Infinity which does not hold any SLP. Because, as the co-founder and COO of Sky Mavis, Aleksander Larson then explained, these are only and automatically generated by the players. But then whose are they?
The investigation therefore then turned to a cryptocurrency exchange platform like Binance. The latter having the strike force and the volumes necessary to use such a quantity of tokens to ensure the liquidity of SLP on its stock exchange. But another address, this time official, seems to already exist and be used for this purpose. The track was therefore discarded, leaving the question of the identity of the owner of these 22 billion SLP tokens in abeyance. Just like the possible consequences that could be catastrophic in case of malicious intentions…
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Axie Infinity – Who owns this address with more than 55% of SLP’s supply? – CryptoNews
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