This post was written exclusively for Investing.com
- Gamers are crypto market’s leading supporters
- Potential for fun and the possibility of making money with AXS
- The 28th leading cryptocurrency
- Incredible returns since November 2020
- Risk and reward with all cryptos in 2022
In past articles on cryptocurrencies, I explained how I made a terrible mistake by considering Bitcoin to be nothing more than a form of video game in 2010. I didn't see the forest beyond the trees then, looking instead at the BTC tokens as worthless coupons that were like the Skee-Ball tickets I earned as a child and traded for the prizes that were dust collectors.
After spending hours playing Pong, Ms. Pac-Man, and Asteroids, I gave up video games in college. My children, the next generation, took up the mantle as new games with amazing graphics emerged.
Those who embraced Bitcoin and the cryptocurrencies, and held onto the tokens, made millions; some even made billions. Today, I understand why other currencies that reject the notion of government control have benefits. Cryptos are fintech tools. Blockchain is the evolution of finance, and cryptos are a control revolution.
We have not yet seen the full fury of worldwide governments, which is likely to escalate along with the asset class’s market cap. Meanwhile, Axie Infinity (AXS) is a top-tier cryptocurrency that embraces gaming and is, at the same time, an alt-currency.
Gamers are the crypto market’s leading supporters
The ascent of cryptocurrencies has been fueled, at least in part, by a significant generational dynamic. Younger people are more adept at technology, and they grew up playing video games while mastering each new technological innovation. Moreover, they embraced social media long before their parents did. It became the primary communication and interaction mode for the younger cohort.
Gamers or those whose fingers were almost glued to controllers throughout their youth gained a particularly in-depth level of technological comprehension and comfort. It is no surprise that the younger generation, now in their 20s and 30s, have been open to cryptocurrencies far more than their parents and grandparents.
The concept of a computer wallet has been foreign to baby boomers while their children are entirely comfortable with tucking their tokens away in password-enabled pouches in cyberspace.
Potential for fun and the possibility of making money with AXS
Pokémon is an incredibly successful series of video games developed by Game Freak and published by Nintendo and The Pokémon company under the Pokémon media franchise. Pokémon is short for “pocket monsters” and exists as a TV show, a trading card game, video games, and toys.
The Pokémon characters are creatures that live in the wild or with their owner (usually kids or gamers). The owners are their “trainers.” The trainer’s goal is to catch the Pokémon. Satoshi Tajiri created the Pokémon franchise in 1996.
Axie Infinity (AXS) is a crypto-meets-Pokémon game. The goal is for players to raise, battle, and trade cute NFT pets called Axies.
Axies and virtual real estate are available for sale via an in-game marketplace in the form of NFTs with AXS as the native token. Axie Infinity’s website describes the protocol as a “Digital Nation” where participants can “Battle-Collect-Earn.”
As of Dec. 21, $3.6 billion has been traded on the in-house AXS marketplace. The most expensive Axie NFT ever sold went for a cool $820,000, and the protocol has 2.8 million daily active players.
The 28th leading cryptocurrency
Axie Infinity’s success has pushed the AXS token to the top tier of the cryptocurrency hierarchy. As of Dec. 23, AXS was the 28th leading token out of 15,897. At $101.65, it had an over $6.19 billion market cap.
The marriage of gaming, NFTs, and cryptocurrencies has made AXS a unique token in the burgeoning asset class. AXS’s returns have been nothing short of spectacular.
Incredible returns since November 2020
AXS began trading in November 2020 at 15 cents per token. On Dec. 31, 2020, the token was at just below 60 cents. 
Source: CoinMarketCap
The chart shows AXS has been a raging success, with the token reaching a peak at $160.36 on Nov. 6, 2021, and trading at over the $96 level even after the correction in the asset class when Bitcoin and Ethereum reached record peaks on Nov. 10.
AXS has a limited supply of 270 million tokens.
Risk and reward with all cryptos in 2022
AXS is unique, but each day new specialized tokens come to market. AXS is a case study of success in the asset class as it outperformed Bitcoin, Ethereum, and many other tokens since November 2020.
The percentage gain is too massive even to consider calculating. However, a $100 investment in AXS in November 2010 at 15 cents was worth over $106,900 at the November 2021 high and more than $64,000 on Dec. 21, 2021. Crypto meets Pokémon has been a huge winner.
While cryptocurrencies like AXS have created massive returns, potential rewards always have a commensurate risk level. Most of the 15,897 tokens circulating in cyberspace will wind up as worthless cyber dust collectors.
Remember, Pokémon was a game that caught on with children and young adults, making it a fad that lasted and created incredible wealth for its founders and sponsors. Cryptocurrencies like AXS are the same. Instead of throwing money blindly at the asset class, do some research and due diligence. Try to think like those kids that make products like Pokémon golden investments.
AXS is a case study, and its position as a game, NFT, and digital protocol that is prepared to embrace the metaverse bodes well for the token’s value. However, investing in AXS or any other token involves massive risk. Buyers must exercise caution and participate with the complete understanding that all capital invested is at risk of a total loss.