1. They don't have a maximum supply, so the potential for inflation is much higher than the potential for price increases.
2. The game's payout isn't as good as it sounds; some players are fed up with the mechanics.
3. I remember having to buy Axies before starting the game.
4. Axie's decline was too steep; their ATH was $165, and today it's only $2.39.
Pretty much agreed with the first point, it's the reason why I wouldn't touch this project with my money despite playing their games back in the days.
The uncapped supply where the gamers are farmers that willing to pull off all nighters to make profit as much as they can. Doesn't seem like a sustaining economy if you ask me.
The new investors just become exit liquidity.