Axie Infinity (AXS) Weakens as Fear Outstrips Greed

Axie Infinity fell for a massive attack in crypto history after losing more than $600 million. The crypto projects see another hack today after a fraudster compromised its Discord server’s bot (MEE6), stationing phishing links.

Axie The New Target

Though developers handled the situation swiftly, market players questioned Axie Infinity’s security as the community and investors remained frustrated. Safety is the priority for any crypto project. And the first thing investors consider before investing. Meanwhile, Axie may not check that box without strengthening its security.

Axie is not providing much to its investors with AXS tokens since the gaming currency remains within the oversold region even after spending a month inside the level. The last time such narratives emerged was in November 2021, when Axie stayed inside the bearish area for four months, losing 64% of its value until March 2022.

Meanwhile, a 43.5% upsurge pulled the token out. Unfortunately, Axie might not see such a move anytime soon as the broad market could take more time to recover with investors in absolute fear. Besides that, the hack news forced investors to move their holdings swiftly. For instance, AXS saw a sudden increase in changing hands rate.

The worst this was the direction the surged velocity by AXS investors took. Holders responded by selling their Axie Infinity quickly as they feared history repeating, and 1.11 million tokens worth $24.13 million entered exchanges within 24 hours.

Such incidents will only damage the token’s reputation further, making it more challenging for Axie Infinity to recover from its current lows. For now, the gaming token has a negative value, exploring price levels last seen in July last year.

Moreover, the alternative coin remained undervalued at this publication, and recovery remained necessary for Axie Infinity to escape the woods.

For now, the broad crypto space flashes bearishness, with fear surpassing greed. Large-cap cryptos noted significant declines within the previous day.

Bitcoin sees gradual falls as it lost 3.16% within 24 hours to $28,916.62 at this publication. Also, the cumulative crypto market value plummeted to $1.23 trillion after losing 3.69% in 24 hours. Such a narrative weakened AXS further.

Editorial credit: TongRoRo / shutterstock.com

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