Hacks have been becoming common now within the crypto world. Recently, a Blockchain gaming project supported by Animoca revealed that it had experienced a hack which resulted in a loss of $15.3 million.
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Animoca-backed Gaming Blockchain Experiences $15M Token Exploit
On Monday, the blockchain gaming project GAMEE, backed by Animoca, experienced a token hack resulting in the loss of 600 million GMEE tokens, equivalent to approximately $15.3 million. The team disclosed in a post on Tuesday that “unauthorized access” to GMEE token contracts on the Polygon network led to the fund’s compromise.
The breach impacted the team’s proprietary token reserves exclusively, and community-owned assets remained unaffected. Suspecting a hack through unauthorized GitLab access to the Polygon GMEE deployer address on Monday at 6:31 pm UTC, the team noted that the stolen tokens were converted to ether and MATIC.
In response to the incident, the attacker traded the compromised tokens on various decentralized exchanges, affecting their prices. The team took measures by securing token contract ownership linked to the breached deployer address and transferring them to a new address for security.
Temporarily ceased liquidity
GAMEE temporarily ceased providing liquidity on decentralized exchanges and informed centralized exchanges with GMEE markets to halt deposits and freeze tokens related to the hack. A more comprehensive update is expected within 48 hours.
An administrator on GAMEE’s Discord channel cautioned users against interacting with GMEE until further notice. Despite this incident, the rise of blockchain gaming continues, with GAMEE’s blockchain aiming to enhance transparency and equity in the relationship between players and developers by generating and deploying gaming tokens through smart contracts on platforms like Ethereum, Binance Smart Chain, and Avalanche.
Concerns Regarding Security of Blockchain Projects
The security of blockchain projects has been a subject of debate, with past attacks underscoring their partial security. Notable incidents in blockchain gaming, such as the Ronin Network breach and the Wormhole bridge exploit in 2022, have raised concerns. Nonetheless, market projections suggest the blockchain gaming market could exceed a value of $600 billion by 2030.
To conclude, the recent $15.3 million token exploit in a blockchain gaming project backed by Animoca highlights growing concerns about security in the crypto space. Despite these challenges, the continued rise of blockchain gaming, as evidenced by projects like GAMEE, suggests a promising future for the industry, with market projections anticipating a value surpassing $600 billion by 2030.
Note: It’s a research based article not a financial advice.
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