A mysterious Axie Infinity wallet has been silently stockpiling billions of Smooth Love Potion (SLP), the in-game cryptocurrency fueling one of the industry's most popular play-to-earn (P2E) crypto games, for nearly a year now.

The unidentified whale wallet now holds slightly more than 22 billion SLP — more than half of the token's total supply.

It is in question about what was discovered by Axie Infinity player and tech co-founder Michael Benko, who first became aware of it on August 25.

Will it affect the market? 

Benko expressed concern about it because of the amount of SLP it had accumulated in a relatively short period of time, which could possibly wreak havoc on the game's ecosystem.

"If it's an individual person, the significance of a wallet holding so much SLP gives that person a huge amount of power over an economy, particularly in an economy where it's so difficult to mint a token."

Axie Infinity, which launched in 2021, is a blockchain-based game in which players buy NFTs of cartoon creatures to breed and battle against the other players in turn-based gameplay.

Players earn SLP by completing daily quests, competing against other players in "Arena" mode, or playing against AI in "Adventure" mode. The SLP can be used to breed Axies, craft in-game runes and charms (power-ups), and exchange for cash.

According to the most recent season update, an average Axie Infinity player can start generating between 10 and 70 SLP per day, depending on their skill level.

"So it is a concern that if someone is sitting there with 22 billion SLP [...], they could really maintain the price flat or down when it should, by natural market conditions, be going up."

The cryptocurrency is currently valued at $0.004, down 99% from an all-time high of $0.40 on July 13, 2021, as per Coingecko.

Who is the owner?

So far, assumptions explaining the presence of the wallet have resulted in dead ends.

Initially, Benko hypothesized that the wallet was some system Axie Infinity had to distribute SLP to gamers who earned it instantly.

On the other hand, Sky Mavis co-founder and COO Aleksander Larson stated that neither Sky Mavis nor Axie Infinity owns any of the game's cryptocurrency, saying, "players created every token in existence."

Yield Guild Games co-founder Gabby Dizon — among the major DAOs for Axie players — stated that YGG did not own it and speculated that it might be a wallet used by an exchange to store liquidity.

"I don't think this is ours because we typically use all of our newly minted SLP for breeding," Dizon said, adding that "the most probable answer is that an exchange is holding it for liquidity."

On the other hand, Benko stated that while many SLP transactions saw Binance as a sender or recipient, he does not believe the crypto exchange owns it after reviewing the transactions.

Aug 31, 2022
Crypto News

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