Token Hack Causes Loss of $15.3 Million for Blockchain Gaming Project GAMEE

Blockchain Gaming Project GAMEE Suffers Token Hack, Losing 600m GMEE Tokens Worth $15.3 Million on Monday

Animoca-supported gaming blockchain exposes $15M token hack

Shalini Nagarajan Last updated: January 23, 2024 06:05 EST | 1 min read

Source: DALL·E 3

Blockchain gaming project GAMEE became the latest victim of a token hack on Monday, resulting in the loss of 600 million GMEE tokens, valued at approximately $15.3 million. The team disclosed the incident on Tuesday, stating that “unauthorized access” to the GMEE token contracts on the Polygon network led to the funds being stolen. However, they reassured the community that no community-owned assets were compromised in the attack.

The team suspects that the hacker gained unauthorized access to the Polygon GMEE deployer address through unauthorized GitLab access at 6:31 pm UTC on Monday. The stolen tokens were swiftly converted into ether and MATIC. In response to the hack, the team secured the ownership of the breached deployer address’s token contract and transferred it to a new address for enhanced security measures.

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The incident had significant repercussions as the perpetrator traded the compromised tokens across multiple decentralized exchanges, impacting their prices on these platforms. Consequently, GAMEE temporarily halted liquidity provision on decentralized exchanges and informed centralized exchanges with GMEE markets to freeze the tokens associated with the hack.

GAMEE intends to release a more detailed update on the situation within 48 hours. Meanwhile, an administrator on GAMEE’s Discord channel advised users to refrain from engaging with GMEE until further notice.

Token Hacks: the Thorn in the Side of Blockchain Gaming’s Ascension

The GAMEE blockchain, backed by Animoca Brands, is specifically designed to generate and deploy gaming tokens through smart contracts on various platforms such as Ethereum, Binance Smart Chain, and Avalanche. This approach allows games to easily transfer and hold these tokens, aiming to create a more equitable and transparent relationship between players and game developers.

While the security of blockchain projects has long been a subject of debate, various attacks in recent years have demonstrated that they are only moderately secure. Notable incidents in the blockchain gaming space include the Ronin Network breach in March 2022, where hackers stole around $625 million in ether and other tokens, and the Wormhole bridge exploit in February 2022, resulting in a loss of $321 million in wrapped ether (wETH) tokens. However, despite these setbacks, industry projections indicate that the blockchain gaming market could surpass a value of $600 billion by 2030.

🤔 Q&A: Addressing Reader Concerns

Q: How exactly were the GMEE tokens stolen? A: The hackers gained unauthorized access to the GMEE token contracts on the Polygon network through unauthorized GitLab access and then proceeded to convert the stolen tokens into ether and MATIC.

Q: Has the hack affected the value of the GMEE tokens? A: Yes, the compromised tokens were traded on multiple decentralized exchanges, leading to a decline in their prices across these platforms.

Q: Were any other assets or tokens affected by the hack? A: The team has assured the community that no community-owned assets were involved in the hack. The unauthorized access only targeted the proprietary team token reserves.

Q: What actions has GAMEE taken to address the hack? A: In response to the incident, GAMEE secured the ownership of the breached deployer address’s token contract and transferred it to a new address for improved security. They have also temporarily stopped providing liquidity on decentralized exchanges and instructed centralized exchanges with GMEE markets to freeze the tokens associated with the hack.

Q: When can we expect more information about the hack? A: GAMEE plans to release a more comprehensive update within 48 hours, providing further details on the incident and their response.

🚀 Looking Toward the Future

Despite the occasional setbacks caused by token hacks, the blockchain gaming market continues to demonstrate tremendous potential for growth. It is estimated that the market could exceed a value of $600 billion by 2030, indicating a significant shift in the gaming industry’s dynamics towards greater fairness and transparency.

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References: – Blockchain gaming project GAMEE falls victim to a token hack – Fox launches blockchain-based open-source platform, Polygon Labs – Animoca Brands launches decentralized chess game Metacade in continuing effort to build the metaverse – Clearpool introduces credit vaults to provide blockchain loan efficiency and empower borrowers – Celsius Network announces unstaking of Ethereum holdings to facilitate the distribution of creditors – Telcoin fully restores user balance after two weeks of $12 million exploit

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