The Dangerous “Play To Earn” Trend In Crypto

Share post:

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.

SUBSCRIBE NOW

Related articles

ChatGPT mobile mania: Why users are flocking to ChatGPT Plus

On the day OpenAI unveiled GPT-4o, ChatGPT's mobile app saw a staggering 22% spike in revenue, marking its...

Study reveals the “disappearing internet”

In a surprising revelation, new research by the Pew Research Center indicates that the internet may not be...

Scarlett Johansson – did OpenAI use HER voice?

Hollywood star Scarlett Johansson expressed shock and anger after a new OpenAI chatbot debuted with a voice eerily...

Google criticizes Microsoft’s security practices in new report

Google has publicly criticized Microsoft for a series of security missteps, suggesting that organizations might consider more secure...

Become a member

New, Relevant Tech Stories. Our article selection is done by industry professionals. Our writers summarize them to give you the key takeaways