Mystery of the whale wallet containing 50% of Axie Infinity’s SLP supply

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For nearly a year now, a mysterious Axie Infinity wallet has been quietly accumulating billions in Smooth Love Potion (SLP), the in-game cryptocurrency that powers one of the play-to-earn (P2E) cryptocurrency games. most popular in the industry.

Today, the anonymous whale wallet now contains just over 22 billion SLP, or more than 50% of the token’s total circulating supply.

The problem? No one knows who it belongs to and what their intentions are.

The wallet in question was brought to Cointelegraph’s attention by Axie Infinity player and tech co-founder Michael Benko, who first learned of the mysterious wallet on August 25.

Should we be worried?

Benko told Cointelegraph that he was worried about the wallet given the amount of SLP he had accumulated in a relatively short time, which could potentially wreak havoc on the gaming ecosystem.

“The importance of a wallet with that many SLPs, if it’s an individual, gives that person tremendous control over an economy, especially in an economy where it’s so difficult to mint a token. “

Launched in 2021, Axie Infinity is a blockchain-based game where players purchase NFTs of cartoon creatures that they breed and battle against other players in turn-based gameplay.

SLP is earned by players for completing daily quests, battling other players in “Arena” mode, or playing against the AI ​​in “Adventure” mode. SLP can be used to breed Axies, craft runes and in-game charms (power-ups), and can be sold on trades.

Benko noted that according to the last update of the season, an average Axie Infinity player can generate between 10 and 70 SLP per day, depending on their quality at play.

“So it’s a concern, if somebody’s sitting there with 22 billion SLP […] they could really hold the price flat or keep the price low when it should actually, under natural market conditions, rise.

Cryptocurrency is currently dear at $0.004, down 99% from an all-time high of $0.40 on July 13, 2021, according to Coingecko.

Who owns it?

The theories explaining the existence of the wallet have so far only led to dead ends.

Benko initially theorized that the wallet was “a system that Axie Infinity was to automatically distribute SLP to players who earned it”.

However, Sky Mavis co-founder and COO Aleksander Larson told Cointelegraph that neither Sky Mavis nor Axie Infinity hold any of the in-game cryptocurrencies, stating:

“All existing tokens were created by players.”

Yield Guild Games co-founder Gabby Dizon – one of the main DAOs for Axie players – said YGG does not own the wallet and suggested it could be a wallet used by a stock exchange to hold cash.

Related: Axie Infinity is looking to “double down” on the Korean market: KBW

“Don’t think it’s ours because we usually use all of our minted SLPs for breeding,” Dizon said, adding “the most likely explanation is that an exchange is holding it for their liquidity.”

Benko noted, however, that while many SLP transactions see Binance as a sender or receiver for many transactions, looking at the transactions, he doesn’t believe it’s a wallet owned by the crypto exchange.

“Binance seems to have an official wallet [already] and it doesn’t seem to be that wallet.

Cointelegraph has contacted Binance for comment but has not received a response at the time of writing.

If you have any theories on who is behind the wallet, contact felixng at cointelegraph.com

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