Animoca Brands warns Axie hack may deter VC firms from crypto
By Aaron Woolner and Carine Lee
06:11, 31 March 2022
The theft of about $625m from blockchain game Axie Infinity on Tuesday could deter venture capital (VC) firms from investing in cryptocurrency projects according to Animoca Brands co-founders.
The hackers targeted the Ronin blockchain run by the firm behind the popular Axie Infinity game. In a blog post on Tuesday, Ronin said that the hackers took control of the network which enabled them to steal ethereum worth about $600m and $25.5m of stablecoin USDC.
According to a report by Beijing-based Sina Technology News, Animoca Brands, a Hong Kong-based VC firm which invests in crypto and online gaming co-founder Yat Siu said this latest development could alter VCs firm’s attitude towards investing in the sector.
Hackers stole $600m ETH
Ronin said that hackers were able to essentially take control of the network and send about $600m of ethereum to an anonymous ethereum wallet. The hackers were also able to withdraw about $25.5m of USD coins.
“It is a shame that it needs to happen to Sky Mavis to get global attention. But we have be more careful now.” Yat Siu said at the NFT LA conference in Los Angeles, according to a report by Sina Technology News.
Sky Mavis, the Vietnamese makers of last year’s breakthrough success in the blockchain gaming sector, was using the Ronin blockchain to speed up transactions and reduce costs.
Animoca looking to compensate players
According to the report by Sina Technology News, Yat Siu said Animoca Brands is in talks with Sky Mavis to compensate players who suffered losses and he declined to comment on the details.
Yat Siu said VC firms investing in crypto companies must help with protecting their investments against hacking attacks who said it has become apparent that reviewing codes and security protocols before making an investment is now of cortical importance.
Blockchain game Axie Infinity rose to prominence in 2021 when players in emerging economies such as the Philippines began using it in droves to make up for lost income during the Covid-19 pandemic.
During the year it achieved revenues of $1.2bn from a user base of just 600,000 active players. Given the success of the game other developers are working feverishly to produce a mass market equivalent that eliminates the technical barriers that currently exist in participating in blockchain games.
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