Axie Infinity Suffers Huge Exploit Resulting In $600 Million Loss And Broken Trust From Players

The team behind the popular Axie Infinity (AXS) crypto P2E game recently announced that they will repay online users who lost their money after hackers reportedly stole about $600 million from the game&39s blockchain infrastructure not too long ago.

What exactly happened?

Hackers recently took advantage of a security flaw in a bridge, the technology that converts tokens into ones which can be utilized on another network, to steal 173,600 ETH as well as 25.5 million USDC tokens in two transactions. According to Ronin, the blockchain that powers Axie Infinity, the compromise occurred on March 23rd but was only identified on March 29th.

As per Aleksander Leonard Larsen, Chief Operating Officer of Sky Mavis, the team is entirely dedicated to reimbursing the users as quickly as feasible, and a solution is still being worked on.

The assets stolen include deposits of gamers and speculators as well as Axie Infinity Treasury earnings. Larsen said that 56,000 ETH taken belonged to the Treasury and that the company does not suspect insider participation in the crime as of this moment.

What happens now?

Axie Infinity is one of the most popular P2E games today, which like The Sandbox (SAND) and various other Play-To-Earn games, enable players to acquire tradeable cryptocurrencies. Daily active users increased last year in Covid-affected developing nations such as Brazil, Venezuela, and the Philippines.

However, following the aforementioned exploit, it is difficult to ascertain as to what the game&rsquos future will be. There are already many other P2E alternatives that gamers could always shift to, so the pressure is on the Axie Infinity team to quickly and decisively resolve the ongoing issue so as to guarantee that it cannot happen again. Moreover, an increasing number of people believe that the fact the hack was only discovered almost a week after it happened is indeed a red flag and it might be time to leave Axie Infinity behind if the users cannot be reimbursed quickly.