Hackers managed to steal $625 million through a security breach for the popular video game “Axie Infinity,” according to game company executives, Tuesday, March 29, 2022, in one of the largest cryptocurrency thefts to date, in light of the high rates of this type of crime. .
According to the company, the theft occurred last Wednesday, March 23, when hackers infiltrated part of the basic storage technology (Blockchain) that powers the game.
Developers at SkyMavis, which in turn runs Axis Infinity and Ronin, said they only discovered the security breach on Tuesday.
The company also explained in a statement that "a security breach occurred in the Ronen network. We work directly with various government agencies to ensure that criminals are brought to justice."
Following the hack, trading on Axie Infinity was halted on Tuesday, while SkyMavis dismissed any concerns that the breach would disrupt its activities on Tuesday.
The famous game raises controversy about its high cost, while it launched a "grant program" that enables talented players who do not have to meet with less skilled players but who have money.
It is noteworthy that the video game company "Axie Infinity" uses the "play to earn" system, which combines finance and games, and is backed by "NFTs", which are unique tokens that cannot be exchanged but can be returned to the user.
Usually, players buy these creature-focusing tokens in order to enter the game, and then spend more crypto money to get different monsters to use during battles.
The NFTs tokens have value in the digital and real worlds.
The hackers stole ETH and USDC cryptocurrencies totaling about $625 million.
It is worth noting that ETH is a currency linked to the Ethereum blockchain, and USDC is a stable currency linked to the US dollar.
Crypto hacks are becoming more and more popular with increased trading volume. In December, Bitmart was hacked; Resulting in the theft of about $ 200 million in digital currency.
What are NFT codes and how are they created and stored?
Many NFT tokens are generated and stored on the Ethereum network , although other Blockchains (such as Flow and Tezos) also support NFT tokens.
Since anyone can enter and use the Blockchains, the ownership of the NFT can be easily verified and traced there, at the same time the person or entity that owns the token can remain anonymous.
There, various types of digital goods, such as artwork, items in digital games, and still images or video from live broadcasts, can be "tokenized" - for example, NBA Top Shots is one of the largest marketplaces for NFT tokens, and is where footage from American basketball is sold.
The difference between NFT tokens and cryptocurrencies?
NFT tokens and cryptocurrencies are based on the same core Blockchain technology.
NFT Markets may also require people to purchase tokens that are not exchangeable for cryptocurrency.
However, cryptocurrencies and NFTs are created and used for different purposes.
And while cryptocurrencies are meant to function as cryptocurrencies by either storing value or allowing you to buy or sell goods. Cryptocurrency tokens are tradable tokens, similar to fiat currencies, such as the dollar.
NFTs create unique tokens that can demonstrate ownership and transfer of rights over digital goods differently, according to Business Insider .
But if you are thinking of buying NFT tokens as a physical investment, know that there is no guarantee of increase in value and profits that depend largely on luck, chance and chance.
It is true that many of them have already been sold for thousands or millions of dollars, but many of them may also remain of little value.