One of the aspects that dominates the present world is money. Everything is for a price. People work to earn money, and businesses run to make money. Money has the world within its grasp, from coins to notes to digital currency. Even though many people underestimated cryptocurrency when it was first released in 2009, the market has boomed to a value of over 3 trillion dollars, as per the latest news, despite fluctuations. And one of those cryptocurrency tokens is Smooth Love Potion (SLP). Imagine if you could earn money by playing online games. Some may view it with excitement, while others may eye it with suspicion. This article will dive into the details:
A. Origin:
SLP is a cryptocurrency token created by Sky Mavis, a Vietnamese Game studio, which is also behind the blockchain-based game called Axie Infinity. Initially, SLP was introduced as a utility token to breed digital creatures called Axies, which are like pets to the characters. Players can earn SLP by engaging in other in-game activities and other battles. The tokens can also be exchanged for another cryptocurrency on various platforms, but it was intended to be a currency that operates within the game. It became popular in 2020, especially in the Philippines.
B. Key Features:
- In-game function:
SLP was introduced as an in-built currency for Axie Infinity. Gamers can use it to breed digital creatures called Axies, which can become friends with their characters and face battles together. People have to finish daily quests to earn SLP, and it makes it a core part of the game’s Play-to-Earn (P2E) model. It allows people to play games, finish quests, and earn currency that is not only applicable in the game but also in real life.
- ERC-20 Token:
ERC-20 is a general term for crafting contract-based crypto on the Ethereum Blockchain. Not only does SLP operate on that, but it also uses something called the Ronin Sidechain, which supports faster and cheaper transactions. The latter is a blockchain made by Mavis Sky to make its game’s functions easier.
- Tradeable options:
MEXC and Binance are a few exchanges that SLP is listed on. This allows it to be traded for other currencies and fiat, which adds a real-world depth.
- Burn mechanism:
After SLP is used in the game, it is immediately burned, which prevents more circulation, which serves the business model for demand and supply. More stock would not remain, and the gamer has to earn more SLP to accomplish things that require it.
- No fixed supply:
SLP is created continuously, and more can be minted as more players join the game. But this could lead to in-game inflation, which can be hard to control unless the used currencies are strictly gotten rid of.
C. Current Trends:
According to the latest sources, while writing this article, the price of SLP is USD 0.001846 with a 24-hour trading volume of USD 7,431,711. SLP is down 10.13% in the last 24 hours. The current CoinMarketCap ranking is #446, with a live market cap of USD 75,897,810, which indicates a fall in the market.
D. Advantages:
- In-game value:
Smooth Love Potion can be earned through playing battles and finishing the daily quests. In turn, they are used by gamers to create digital companions called Axies, who can join their selected character to win more challenges efficiently. This play-to-earn model is what made the game viral after the pandemic.
- Real-world value:
Unlike other games’ currencies, which are only dedicated to in-game features, SLP can be traded through platforms like Binance, MEXC, and Gate.io, which gives them a real-world value, as they are not just game currency. They can be converted into a usable form in the world by making them into other crypto tokens or fiat currencies.
- Burn mechanism:
To prevent inflation and control the unlimited supply, Axis Infinity employs the burn mechanism, which eliminates used SLP tokens and prevents their circulation.
- Wallet Support:
SLP is supported by many exchanges and digital wallets like Ronin and MetaMask. It makes it easy to store, trade, and transfer to other platforms.
- Ronin Sidechain:
Ronin, a layer-2 solution and a custom blockchain created by Sky Mavis, allows fast transactions of SLP and low gas fees, which is more effective than usual Ethereum tokens, where it was riddled with speed delay, high fees, and low scalability.
E. Drawbacks:
- Price Volatility:
According to the latest sources, SLP has gone from the value of $0.39 to under $0.002 — a loss of over 99% from its peak. This makes it less trustworthy to invest in. No matter how much a player earns, such crashes can render them unproductive and ineffective. Such drastic changes can be caused due to people leaving the game, the sudden decrease in P2E model popularity, or more attractive options from competitors.
- Unlimited supply:
Inflation is the ultimate result when money is created continuously. Its number increases, but the value falls over time. Though the game employs a burn mechanism, it has to be regulated strictly. And even then, people try to find any loopholes to exploit for gain. Hence, unlimited supply is also a disadvantage if not overseen with precision.
- Dependence on the game:
Axis Infinity holds sole domain over SLP tokens. A butterfly effect can happen if the creators decide to change any aspect of it; let it be code or in-game changes. And this may affect the SLP value. This co-web, where everything relies on a single point, can affect the value of SLP in the future, in case the creators make any alterations.
- Upfront investments:
New players of the game cannot breed their Axies immediately, but must pay beforehand, which can be quite expensive. This does undermine the likability of the game and makes users turn to other options.
- Technical Barriers:
If a person is not aware of the technology that revolves around cryptocurrencies and the game’s features, then it is quite complex to earn SLP.
F. Conversion to PHP:
As of the latest news, the conversion rate for SLP to the Philippine currency, the Peso, is approximately ₱0.1020 per 1 SLP. And the live price is PHP 0.112283, a +0.28% in the last 24 hours. The current Smooth Love Potion market cap is PHP 4.62 B. The 24-hour trading volume is PHP 488.62M, with a circulating supply of 41.12 B.
G. Predictions:
Here are some predictions made by various websites and entities:
- WalletInvestor predicts a long-term increase, with SLP potentially reaching USD 0.00198 by May 2030.
- Bitscreener estimates it with a potential high of USD 0.1291 and a low of USD 0.0003052, indicating volatility
H. Similar tokens:
Here are some similar crypto operations like SLP:
- GALA in Gala Games:
This token is used across the Gala games ecosystem, a decentralised gaming platform. It can also be used to buy NFTS, staking, obtain game rewards, and governance. Unlike SLP, GALA can be used in various games by the company, as opposed to a single game.
- ILV in Illuvium:
This is the native token that operates in the Illuvium ecosystem with AAA RPG on blockchain. ILV tokens are earned by people who complete battles and other game missions, and also have a limited supply. It focuses on long-term holdings, while SLP focuses on frequent usage.
- SAND in The Sandbox:
It is utilised in The Sandbox, a blockchain metaverse. People can use it to complete actions like buying land, avatar customisation, staking, and buying other in-game items. SAND is not only an in-built utility token but also gives the users voting power and the option to participate in monetising content generated by them.
- REVV in Animoca Brands:
This token is used in digital ecosystems like F1 Delta Time and REVV Racing. It can be used to make the required payments in games, like for entry fees, reap event awards, and vehicle upgrades. It is used across racing games, and players can use REVV to improve their car, buy more digital gear for their vehicles, or earn awards.
- TLM in Trilium – Alien Worlds:
It belongs and is utilised in the ecosystem of Alien Worlds, a space-themed metaverse. TLM can be used for in-game activities like mining, DAO governance, and staking. It is also used for upgrading gears and in missions. It focuses on enhancing actions listed above and play the game more efficiently.
I. Future outcomes:
As of now, SLP is still tightly bound to the Axie Infinity game ecosystem and hasn’t been properly centralised to count as an individual entity. While some platforms predict growth, others report instability in their ranks, and this could risk trust and investment rates for gamers and others. It is also predicted that people may lose interest in the game due to all the disadvantages it has, over the incentives it provides. It may create a drop in SLP’s value.
To conclude, SLP is like a bridge between two worlds, between games and the cryptocurrency economy. It allows gamers to earn this cryptocurrency by finishing in-game challenges and battles, and then it can be traded in various exchanges, giving it depth of real-world value, along with in-game significance. Though it has many advantages and allows gamers to earn real money by converting their SLP to USD or PHP, its value in the market is rather unstable, and hence, players must be cautious.
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