- A security breach that allowed hackers to swindle 173,600 Ether and 25.5 million USDC tokens in a $600 million hack of play-to-earn game Axie Infinity is making investors cautious about cryptocurrency, Bloomberg reported, citing Animoca Brands co-founder Yat Siu.
- The incident could alter the attitude and responsibilities of venture capitalists investing in crypto.
- Animoca is a venture capital company with businesses in non-fungible tokens and has invested in Axie Infinity’s developer Sky Mavis.
- The hack has underscored the weaknesses in bridges that allow digital tokens to be swapped between different blockchains.
- In the recent attacks, hackers targeted the Ronin Bridge, which Sky Mavis adopted to help Axie Infinity’s network accelerate transactions and reduce costs.
- The report cited Siu stating venture capital firms investing in crypto will be forced to resort to vigilant methods such as auditing the blockchain code and security protocols before investing.
- Animoca is in discussions with the Sky Mavis team about reimbursing players who lost funds.
- photo via Pixabay
