Retail Traders and Gamers Are the Biggest Losers in the Axie Infinity Hack
A breach of the Ronin network, on which the play-to-earn game is built, resulted in a hacker abusing the bridge and stealing $620 million in cryptocurrency. This was a setback on several levels and for a large number of people associated with the project.
For one thing, it demonstrated how susceptible Axie Infinity is, all the more so because the attack was not spotted for over a week. While this has harmed the developer, Sky Mavis, the greatest losers seem to be the platform’s hundreds of thousands of users.
As a play-to-earn game, Axie Infinity rewards players with SLP and AXS, which they can exchange for fiat currency or other digital assets. This warning option drew a large number of gamers to the site. However, the attack presents a new difficulty for the users, the majority of whom are from low-income nations.
The option to withdraw profits from the game and convert them to other digital currencies has been banned as a result of the attack.
This capability was enabled by the Ronin bridge, the program used to steal the cash. While Sky Mavis has committed to restoring the stolen payments, it has temporarily discontinued the bridge in order to ascertain if there are any more weaknesses.
Suspending withdrawal has an effect on users
Although the gaming site now enables withdrawals through Binance Exchange, numerous players remain locked out of their monies, and many have already lost them.
Sky Mavis has indicated that it would repay people who have suffered financial losses as a result of the assault, but there are no details on how it intends to do so. The delay in replenishing the bridge continues to be costly to users, many of whom depend on the site for their livelihood.
According to Catherine Fleck, an associate professor of computers and social responsibility at De Montfort University, “even a few days’ delay in replenishing the bridge would damage someone’s ability to feed their family or pay their bills.”
Additionally, several Axie players benefited from a “scholarship program” to participate in the game. This means they had supporters who provided them the assets necessary to play in return for a share of the profits.
Unfortunately, since the bridge is not operational and users are unable to withdraw, these scholars are unable to repay their loans.
Regardless of whether the bridge is down, Axie creators and investors continue to gain from player engagement, even if those players are unable to pay out their winnings.