The game was developed by Sky Mavis and it involves collecting and raising fantasy characters called ‘Axies.’ The Smooth Love Potion token, which is based on the Ethereum blockchain, is provided to players as an incentive for playing the game well, and is also vital to the in-game economy.
Understanding the SLP token’s uses and background, along with some of its current challenges and limitations, is a good first step in deciding whether or not the SLP token is a worthwhile investment. So let’s take a closer look at this game currency.
Origins and Use Cases for Smooth Love Potion
The main point to consider when diving into SLP token, and Axie Infinity in general, is the revolutionary ‘play-to-earn’ model. While many traditional mobile games earn money by encouraging players to purchase items within the game, Axie infinity draws players in with the opportunity to earn currency just by playing the game.
These rewards are issued in the form of the Smooth Love Potion token.
SLP is an ERC-20 token, meaning it is built on the Ethereum blockchain, and can therefore be stored in any Ethereum-compatible wallet, and it adheres to all Ethereum token standards.
The SLP token serves many functions within the Axie Infinity game. For one, users can spend their SLP to breed their existing characters and create completely new ones. SLP tokens can also be spent in the game’s marketplace to directly acquire characters that are more powerful and highly sought after.
Smooth Love Potion is also provided to users as a reward for skillfully battling against other players’ characters during gameplay. All the income that players manage to earn in the form of SLP tokens can then be cashed out by trading it on conventional or decentralized crypto exchanges.
You can trade your SLP tokens for any number of cryptocurrencies, or cash out in various FIAT currencies.
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Tokenomics and Price History
The total Smooth Love Potion token supply is approximately 41 billion tokens, all of which are currently in circulation. The demand for rare and powerful characters on the game’s marketplace, along with popularity of the Axie Infinity game overall, definitely plays a large role in the fluctuating demand for SLP tokens.
To date, the game has attracted users from all over the world, especially in areas where incomes are low and economic opportunities are somewhat limited.
It is important to note, that the SLP token reached an all-time high in May of 2021 of $0.4191 USD.
The earning potential at that time certainly surrounded the game with a lot of buzz and really provided incentive for people to continue playing. Since then, the token has fallen dramatically in price and currently sits at approximately $0.0015 USD. With a significantly lower reward for playing, it is no surprise that the number of people playing the game has also fallen off.
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Challenges and Limitations for the SLP Token
Since the Axie Infinity game runs on the Ethereum blockchain, it can be affected by the limitations of the network. During times of high traffic on Ethereum, the gameplay may be slower and all transaction fees will be higher.
As is a problem with many applications built on Ethereum, Axie Infinity’s ability to scale up the number of users and transactions within the game will continue to be a challenge.
Regulatory bodies in various countries have taken notice of the token, especially during the time the token value was high. Tax implications and the way in which the asset is ultimately classified will be interesting and will no doubt affect the demand and price of the token in the future.
Given that financial rewards for playing Axie Infinity are currently quite low, keep in mind also that the game is in direct competition with a colossal gaming industry where the popularity of games can be short-lived and unpredictable.
The SLP rewards alone may not be enough to retain players and attract new ones in the long term. If the cryptocurrency sector, and more specifically Bitcoin, gains more value and adoption overall, then the SLP token may rise with the tide and regain some of its attractiveness, but that hardly seems like a good enough reason to choose it as an investment.
How can you earn SLP tokens on Axie Infinity?
You can play Adventure mode or Arena mode to earn SLP tokens. Daily quests provide additional coins.
- Arena mode (PvP) is a player versus player battle with other competitors. With every match you win, your ranking improves. Earning SLP in PvP is unlimited, but every match needs one energy. If your energy runs out, you will not gain any reward.
- Adventure mode (PvE) is Axies Infinity’s Adventure game in which you quest to different territories to defeat magical creatures to earn SLP. You don’t need energy to play PvE, but the number of SLP tokens you can earn each day in PvE is limited to 50 SLP.
- Daily quests are another way to earn SLP through playing. But this is a bit more challenging as it requires specific PvP and PvE games to earn extra SLP. For example, you need to win 5 PvP matches and pass 10 PvE levels to grasp the daily check-in and earn extra SLP.
Play how you wish to earn SLP.
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Smooth Love Potion FAQs
Does the SLP token have a limited supply?
Yes. The total supply of the SLP token is 41,443,102,696. All of these tokens are currently in circulation.
What is the purpose of the SLP token?
The Smooth Love Potion token was created for use in the Ethereum-based video game, Axie Infinity. The token can be used for breeding new characters, purchasing items in the marketplace and it is provided as a reward for winning battles in the game.
How can I buy and store the SLP token?
SLP is available from various centralized crypto exchanges like Binance, and can also be purchased with the Coinbase app, and on decentralized crypto exchanges. Tokens can be stored in any Ethereum compatible crypto wallet.
Is the SLP token a worthwhile investment?
Maybe. The popularity of the Axie Infinity game is the main determining factor in assessing future demand for the SLP token. If developers can overcome the challenges they face and grow the game, SLP might be worth looking at.
Can I earn staking rewards on SLP tokens?
Sky Mavis, the developers of Axie Infinity, do not currently have a staking option on their website. There are other websites that offer staking for SLP tokens, but the reward for doing so is currently only about 1% APY (Annual Percentage Yield).
Do I have to purchase SLP tokens to play Axie Infinity?
No. The Axie Infinity game is free to start playing. Owning some SLP tokens may provide advantages for getting started, and increase the overall enjoyment of the game.
Final Thoughts on Smooth Love Potion Crypto Token
The play-to-earn gaming model is certainly an interesting approach to attracting new users to your platform. Axie Infinity is not the only game developer utilizing crypto rewards as an incentive to bring on new players. Catecoin provides play-to-earn rewards for its ‘Rise of the Cats’ game, and other competition includes MyCryptoHeroes and Splinterlands.
Determining which games really catch on is tricky. If Axie Infinity, or any play-to-earn game can gain the kind of viral popularity of a game like Candy Crush, then the potential rewards and demand for the Smooth Love Potion token could be staggering. Whether you decide to invest in it or not, you can also simply play the Axie Infinity for fun.
See current prices for crypto assets, as well as forecasts on our crypto conversion page.
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