Update on reimbursement status of investors
Ronin Sidechain; the blockchain home of the Axie Infinity Game was hacked.
- Most of us in crypto remember this hack due its size: 600 million dollar plus and the fact that 400 million dollars plus belonged to the players of Axie Infinity.
- A huge blow to the players, many of whom played this game to support themselves and their families. Many of them lost everything.
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One sunny aspect was the creator promised to reimburse the players and investors who lost everything.
- The creator Sky Mavis promised to reimburse the 400 million dollars lost March 29th, 2022. And 30 days later I wanted to check on his progress.
- Have they paid the investors?
- Did they fix the vulnerabilities?
- How’s the price of Axie Infinity Doing?
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So far 150 million dollars raised to reimburse investors.
- According to an interview in CoinTelegraph the Axie Infinity team has raised 150 million dollars of its 400 million dollar goal.
- This is certainly an impressive start, and the team deserves some credit.
So far no investors have been reimbursed
- ‘However no one has yet been reimbursed, and the team stated a timeline of 2 years to achieve their goal.
Token Price plunges from $160 dollars to $30 dollars.
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source
- As you can see from this CoinMarketCap chart Axie has lost 8/10ths or 80% of it’s value.
- ‘While many would love to have a 30$ token, it’s a big drop from 160$.
- ‘Those who bought at the top have taken heavy losses and are no doubt disappointed, and some may be angry and many may have left the community.
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What about the number of Players? It’s down.
The number of daily active users, or DAUs, has fallen 45% to 1.48 million from a peak in November, according to data compiled by Axie Infinity owner Sky Mavis.
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- It has been rumored since December, 2021 that player activity was falling off for the game.
- And while I wish only success for other blockchain games and the players, it’s important to learn from their mistakes, so those building games or other projects don’t repeat them and suffer their fate.
Falling Player numbers was blamed on:
- High transaction fees on Ethereum
- High prices for Axies made the entry fee to the game nearly $1000.00 by many accounts.
- ‘And now the investors funds are even safe in their blockchain game wallets.
- Security is directly related to decentralization and insecurity can be cause by centralization.
- ‘The smaller the number of targets, the easier it is to control a majority.
Centralization in a decentralized world.
- The non-technical explanation for the hack, is the security was to centralized, so control of 5 computer nodes was all the hacker needed to steal 600 million dollars.
- ‘The fix proposed increased the number to 21 computer nodes, but the team has not yet made an announcement that all vulnerabilities have been patched.
- Remember the models of decentralization have thousands of computer nodes, which provide security and resistance to hacking.
- This is what exists on the Bitcoin, Ethereum and other Proof of Work blockchains.
- ‘Delegated Proof of Stake Blockchains like Binance, Binance Smart Chain and even Hive, deploy at least 21 computer nodes.
- ‘These blockchains with smaller numbers of computer nodes are faster and cheaper, but security can still be maintained by distributing the nodes in a decentralized manner and by actually having a large number of nodes.
- Remember in delegated proof of stake like Hive or Binance, although only 20 computer nodes are paid for being nodes, there are other non-paid nodes which exist only to increase security through decentralization and geographic distribution making it hard to find and control the majority of the computer nodes.
- In fact, Hive has hundreds of computer nodes providing security.
The future of Axie Infinity
- They haven’t paid back the players yet, but it’s only been 30 days.
- ‘The price is down 80%
- The number of players playing is down 48%
- I suspect that Axie Infinity will survive and thrive, growing and developing into a better version of itself.
- But Short term it will be a rough and risky investment.
- The price could continue to fall, so people buying now may be catching a falling knife, so they may get hurt.
- But the game is famous and probably is still played by one million people…
- So it has potential to recover in the longterm.
- So buyers could make money.
- This is of course not financial advice, and you could lose all the money you invest.
- So do your own research, and study Mean Revision and Dollar Cost Analysis for important investment success tips.
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@shortsegments
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#axie-infinity #axieinfinity #hack #ronin #ethereum #bitcoin #proofofwork #proofofstake
#hive