April 11, 2022
Crypto enthusiasts and investors have attracted millions of users to the crypto world through the blockchain-based online games known as “play-to-earn.”
A lot of users have earned a substantial amount of money while playing these games. However, involving in such activity comes with a lot of risks.
One of the risks are imminent cyberattacks from hackers which could end up stealing users’ hard-earned money and data. Also, since crypto thrives on anonymity, tracking these attackers could become almost impossible.
Axie Infinity hack which saw hackers steal a whopping $615 million points users in the direction of the risks that crypto can expose users to.
Axie Infinity is a blockchain-based online game platform where users can buy virtual blob-like creatures with varying attributes as NFTs, or non-fungible tokens.
According to legal experts, there is no safety parameter for players who have or are investing in risky assets. This, therefore, makes them vulnerable should the project collapse or assets dry up.
“There are no guaranteed values of either the token or the in-game asset as their value is often determined by supply and demand in the market. This means there can be significant volatility in the price and, if the project becomes less popular or is abandoned, then there is a potential for the assets to become worthless,” David Lee, cryptocurrency associate at London-based law firm Fladgate said.
The sources for this piece include an article in Reuters.
