Play-To-Earn Crypto Games Set To Experience Major Hacks

Play-to-earn crypto games are set to experience major hacks, according to a cybersecurity auditing company that claimed GameFi initiatives are putting “money before security” and because of that, they are very dangerous for both the projects and its customers.

Hacken, a blockchain cybersecurity auditor, says that “unsatisfactory” cybersecurity practices in play-to-earn (P2E) crypto games represent a serious risk to GameFi projects and their players.

According to a report from August 1, data shows that Gaming Finance (GameFi) projects, which include P2E games, frequently “place profits before security” by delivering goods without implementing the necessary security measures against hackers. Thus, play-to-earn crypto games may experience major hacks.

P2E games frequently include nonfungible tokens (NFTs) in addition to cryptocurrency in their ecosystems. The biggest projects, including Axie Infinity (AXS) and Stepn (GMT), employ a wide range of tools meant to improve the game experience, like token bridges, blockchain networks, or tangible goods.

Based on information gathered by the crypto security ranking service CER.live, Hacken researchers discovered that GameFi’s cybersecurity in particular had serious flaws. It was discovered that 16 of the 31 GameFi tokens examined obtained the poorest D security grade, while none received the top AAA security rating.

The weighting of several cybersecurity factors, including token audits, the presence of bug bounties and insurance, and whether the team is open to the public, was used to assign rankings to each project.

According to Hacken’s research, GameFi projects frequently received low grades since no P2E projects had insurance that would have allowed them to promptly recoup lost monies in the event of a hack.

Chief marketing officer of cryptocurrency insurance company InsurAce, Dan Thomson, has reportedly said that the company did not cover any P2E projects, which is a partial confirmation of the lack of insurance.

Only two projects have an active bug bounty program, according to the report. Axie Infinity and Aavegotchi both provide bug bounties, which pay out money to ethical hackers who discover errors in the source code.

Finally, it was discovered that just five projects had finished a platform audit, which might have discovered significant security issues throughout the project’s whole ecosystem, even though 14 projects had obtained a token audit. Aavegotchi, The Sandbox, Radio Caca, Alien Worlds, and DeFi Kingdoms are a few of these.

Read the latest cryptocurrency news.