Axie Infinity's Poor Security Should Also Give Me Another Good Reason to Say "No Thanks!"
On March 30, 2022, CNBC also reported on this incident where more than USD 600 million was stolen from the makers of Axie Infinity:
The makers of one of the most popular blockchain-based online games said Tuesday that hackers were able to steal assets worth about $625 million from the gaming company and its players.
The theft immediately became one of the largest in the history of the burgeoning world of cryptocurrencies and decentralized online gaming, both of which have skyrocketed in popularity in recent years.
The hackers targeted Ronin, a blockchain service run by the owners of Axie Infinity, which is an online game that attracts around 2 million daily users and sees tens of millions of dollars in daily sales volume. Ronin said Tuesday in a blog post that hackers were able to essentially take control of the network and send 173,600 ethers, worth about $600 million, to an anonymous ethereum wallet. The hackers were also able to withdraw about $25.5 million of USD coin, which is a digital currency pegged to the value of the U.S. dollar.
Ethereum, like bitcoin, is a cryptocurrency based on blockchain technology, in which many computers contribute to a shared database that is not controlled by any single entity. Hacks of cryptocurrencies such as bitcoin and ethereum have jumped in recent years as they’ve grown in value. They are different from traditional, government-backed currencies such as the U.S. dollar in that they’re purely digital and all transactions are recorded on a decentralized computer ledger known as a blockchain.
This is really another reason why I'm not interested in cryptocurrency. I watched Trust No One: Hunt for the Crypto King to which I fear Gerald Cotten may have faked his death although his wife says otherwise. There was also Ruja Ignatova from Bulgaria who's currently gone missing and might've died without us knowing it. The problem with cryptocurrency as said isn't just the volatility--it's also with the vulnerability as demonstrated by the ongoing case of the poor security with how Ronin was so easily hacked. One question worth asking right now is, "If the bank isn't known for its security then would you let that bank use your money?" Depositors earn interest because the bank borrows their money. Money is used for loans such as government loans (bonds) and business loans. Depositing money to a bank with poor security is like letting a spoiled brat handle a huge amount of money.
I think buyers are wise not to buy Axie Infinity in spite of the 30% price tumble according to Coin Telelegraph. It's one thing to buy stocks at a lower price. However, nobody wants to own a stock coming from a company with poor performance. Buying a poorly performing stock vs. buying a quality stock at a discount are two different things. Besides, it costs around USD 100.00 to start playing the game and you have to dish out more cash to upgrade your Axies. It feels like cockfighting in the digital world where the Axies are like the fighting cocks. People end up getting money from their wins that might mean one thing--Axie Infinity is really a gambling den! Although Axies are fictional characters (unlike the fighting cocks)--one can't deny that the losses may be heavier than the wins in the long run.
I remembered how some people are just addicted to cockfighting. The thrill of it is because from what I heard, the Axies fight based on artificial intelligence. It's not like the e-Sports arena where gamers don't only train but control the fictional characters they're using to compete in the event. In cockfighting, you release your fighting rooster to fight your opponent's fighting rooster. It's one thing if I invite my friends over to play computer games. It's one thing if I pay to play online against peers without the promise of monetary reward. It's because the norm is to pay to play and not play to earn. Nobody eats to earn but you eat because you earn. Gamers are like restaurant customers--they pay to play without expecting a monetary return. In this case, I feel like selling Axies is comparable to selling fighting roosters--except that the Axies are fictional characters.
Besides, I've heard stories of how cockfighting invites a lot of trouble. I even heard someone's son got kidnapped after a cockfighting deal went wrong. I think this game might soon spurn kidnapping and robbery cases because people are going to lose a lot of money playing Axie Infinity. It's almost like money gotten from a Ponzi scheme or drug dealing--you get it fast and you lose it fast. The initial high return will tempt the player for more. The player ends up giving up more resources for more ridiculously high returns. In the end, it was nothing more than a spinning-around game. My take? Stay away from Axie Infinity. Gaming should and should always be considered an expense for personal enjoyment (like buying ice cream) and not an investment.
