Makers of Axie Infinity game raise $150mn after massive crypto hack

Supporters of Sky Mavis, the blockchain gaming company that was hit by one of the biggest crypto hacks of all time last month, have extended him a $150 million lifeline and helped recover it Axe Infinity players for their stolen funds.

Hackers stole more than Cryptocurrency worth $600 million by Sky Mavis’ blockchain system, the Ronin Network, on April 23.

Despite criticism of the Vietnam-based company for not discovering or disclosing the attack sooner, as well as a user slowdown that had already set in before the hack, Sky Mavis has secured its position medium from the crypto exchange binance – a new investor – and existing backers, including Andreessen Horowitz, Accel and Animoca Brands.

Most of their $150 million investment comes in the form of a secondary offering, in which the founders of Sky Mavis sold their personal shares.

Sky Mavis Chief Operating Officer Aleksander Larsen said he and his co-founders would use the cash proceeds from the share sale to pay back players whose funds were stolen.

“We take responsibility for this situation – we feel we should have done better,” he said.

The “very kind gesture” helped win back investors’ respect, said Yat Siu, chairman of anime, which is also an investor in Yuga Labs, the company behind Bored Ape Yacht Club, and several other crypto and NFT properties. “They wanted to show that they are here for the long term.”

Andrei Brasoveanu, a partner at Accel, said he believes the company has taken the right steps to secure its technology platform going forward and has managed to retain the goodwill of much of its gaming community. “The team was great and I was really impressed with how they handled it,” he said.

Two-thirds of the stolen funds came from users. Around $200 million came from the Axe Infinity Treasury of monster hunting game earnings that Sky Mavis is working with law enforcement to recover.

Axe Infinity has become the most well-known blockchain-based video game in the world, making it a closely watched test of the usefulness of non-fungible tokens and crypto-assets beyond financial trading and speculation. In October, Sky Mavis raised $152 million in venture capital at a valuation of around $3 billion. Larsen did not want to comment on the evaluation of his last lap.

The Pokemon style game has tightened controversy for its business model which depends on buying and training monsters which can then generate cryptocurrency. A drop in the price of its in-game currency in recent months, partly due to changes Sky Mavis has made to how the game works, has caused its player count to drop sharply from a peak of nearly 1.5 million late last year .

Last month’s hack came just days before Sky Mavis was due to release a new version of its game. Axe Infinity Origins, which is free to play and features more polished graphics and gameplay than its predecessor. Players can use the Axie characters from the original game that they purchased as NFTs originswhich the developer hopes will appeal to a mainstream audience.

According to Larsen, the first game generated $1.3 billion in revenue last year, although the four-year-old company has struggled to keep up with its sudden rise.

“This attack . . . is a direct result of compromises because we are growing so fast,” said Larsen. “The security and everything around it really can’t keep up.”

He added: “Going forward, lesson learned, let’s prioritize safety.”

Makers of Axie Infinity game raise $150mn after massive crypto hack Source link Makers of Axie Infinity game raise $150mn after massive crypto hack

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