According to sources of technology magazine The Information Sky Mavis, the developer of the popular crypto-based online game Axie Infinity, is raising approximately $150 million in a Series B funding round led by Andreessen Horowitz.
Sky Mavis is valued at $3 billion thanks to Axie Infinity
According to the sources, Sky Mavis is valued at $3 billion thanks to Axie Infinity’s significant growth in sales. The game is likely to generate $1 billion in revenue from in-game transactions this year. Sky Mavis confirmed the rumors after the release of this article in a press release that was issued on Tuesday. The Axie Infinity maker said it was going to use the funds to create economic and financial freedom for gamers. Notable investors in the funding round were global exchange FTX. Accel, Paradigm, Standard Crypto, as well as Fabric Ventures and Samsung Next.
Axie Infinity has also announced a decentralized exchange. The exchange will allow users to trade tokens used within the ecosystem. The DEX could help keep users playing the game as it removes certain friction for players who need to move their tokens off the platform to trade them.
Not the first funding round for Sky Mavis
Sky Mavis previously raised $7.5 million in a Series A funding round in May. Libertus Capital led the Series A round, with a long list of other participants. This included crypto investment fund Collab + Currency, crypto game publisher Animoca Brands, BlockTower Capital, Twitch co-founder Kevin Lin, and DeFi Alliance. Billionaires like Mark Cuban and Alexis Ohanian also backed the NFT game.
A lot has changed between the last funding round and the present. Axie Infinity’s token $AXS was trading at a price of $4.30 on May 22, and the platform itself and the game had around 70,000 downloads as of March 20, 10,000 of which came from the Philippines. Right now, AXS is currently at an all-time high of $145 thanks to its recent staking announcements. The game also reached 1.5 million daily users two weeks ago. This is likely because of its unique Play2Earn mechanism allowing users to earn money while playing the game.
What is Axie Infinity?
The focus of Axie Infinity is on turn-based battles, either against computer-controlled Axie teams or live opponents over the internet. The game runs on the Ethereum blockchain using Ronin, a sidechain that helps minimize fees and transaction delays.
NFTs represent items in the game. In Axie Infinity, Axies and land parcels populate the game. After purchasing these NFTs, you can exchange Axies for real money in the game’s marketplace. You can also breed Axies, which allows you to build stronger teams.
What makes the game so unique is its successful “play-to-earn” mechanism. Users can breed Axies and earn real money from them, and the “play-to-earn” approach rewards them with crypto tokens that they can exchange for cash. Thousands of “Axie Scholars” can often be found on Discords, where Axie owners lend their NFTs to other players to play Axies and earn a living. Users split the profit between the parties, and in countries like the Philippines and Indonesia, people play Axie to support their families.