How Axie Infinity's Hurdles Are Shaping Vietnam's Web3 Gaming Future

From $4 billion in NFT sales to a $620 million hack and Apple's walled garden, Axie Infinity's journey exposes the harsh realities of Web3 adoption for millions of iOS users—and offers crucial lessons for Vietnam's gaming future. Sky Mavis's flagship blockchain game now operates in two distinct ecosystems: a full-featured Web3 experience where players truly own their digital creatures, and a restricted iOS version where Apple's 30% revenue cut and NFT limitations strip away core play-to-earn mechanics.

AXS crypto has dropped over 90% from its $164 peak to around $3—a decline accelerated by both the 2022 security breach and ongoing platform constraints. The Vietnamese gaming giant's journey from hack victim to platform diplomat reveals how Vietnam's most successful gaming export navigates multiple existential threats while rebuilding trust and adapting to mainstream adoption realities.

The Evidence

Axie Infinity's challenges weren't sudden—they were structural adaptations to catastrophic setbacks and evolving market conditions. The play-to-earn model that created economic opportunities during COVID-19 faced its ultimate test when North Korean hackers used fake LinkedIn job offers to infiltrate Sky Mavis in March 2022. A senior engineer, lured by a generous salary offer, downloaded a malicious PDF during fake interviews, compromising the Ronin network's validator system and enabling the $620 million theft.

The hack exposed critical vulnerabilities: Ronin operated with only nine validators, and one entity controlled four of them—making it far easier for hackers to gain majority control compared to truly decentralized networks like Bitcoin.

On iOS, players can battle and progress through the game but cannot craft SLP (Smooth Love Potion) tokens or purchase NFTs externally—the exact features that defined Axie's revolutionary play-to-earn model. Android and desktop users enjoy full Web3 functionality including token rewards and marketplace access, while iOS players experience streamlined gameplay but economically neutered mechanics.

Sky Mavis has proactively addressed these dual challenges through strategic adaptations. Post-hack, they rebuilt the entire validator network with enhanced decentralization and implemented multi-layered security protocols. Simultaneously, they developed SLP stability funds and deflationary policies while transitioning toward sustainable "play-and-earn" mechanics.

Current Season 13 features a substantial 90,000 AXS prize pool (worth over $270,000) and ongoing tournaments, demonstrating ecosystem recovery. While newer projects like Solaxy grabbed headlines with their 38% rally after raising $57 million, Axie's ecosystem continues rebuilding trust through consistent events and transparent security improvements¹.

The upcoming Atia's Legacy MMORPG, scheduled for 2026 with playtests beginning this year, represents Sky Mavis's strategic evolution beyond simple battle mechanics toward persistent virtual worlds. Every validator network design decision now carries the weight of a $620 million lesson in the importance of true decentralization.