What happened
Axie Infinity ( AXS 19.71% ) was up by almost 18% across the 24 hours preceding late Thursday afternoon. Investors traded up the coin, which is the native token of a multiverse game of the same name, after it was added to an important feature — and promoted — on a top cryptocurrency platform.
So what
In the cryptocurrency world, what happens on its top exchange, Binance, really resonates with investors. Binance has not only added Axie Infinity to its auto-invest feature (which, it nearly goes without saying, automates certain investments for cryptocurrency holders active on its platform), but has also included it in a pair of promotions.
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When devoting Axie Infinity and other selected cryptocurrencies to auto-invest, clients can take advantage of both promotions simultaneously. In the first, provided they make a net deposit amount of one of these coins to their Binance account from an external source or sources, they can reap annual percentage yields (APYs) of up to 50% on Binance savings products.
In the second, per the exchange:
All users whose subscription amount in [Axie Infinity], [Binance USD], [PancakeSwap], [DREP] or [Tether] Locked Savings and cumulative net deposit amount of these tokens on Binance.com both meet the requirements specified below, can receive a corresponding VIP Upgrade Voucher and enjoy the benefits available to accounts of up to the VIP 4 level for two months.
That VIP level depends on the amount deposited, ranging from the equivalent of 200,000 Binance USD, which secures the VIP 1 tier, to 5 million Binance USD for VIP 4.
Now what
Axie Infinity’s splashy arrival on Binance has given it new heft and prominence. As ever in the cryptocurrency world, however, volatility is the norm, and a negative development with the token could sharply reverse those gains. Axie Infinity is riding high at the moment, but any investor interested in it should watch coming developments closely.
This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis – even one of our own – helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.