In a major blow to the blockchain gaming industry, Gamee, a project backed by Animoca Brands, confirmed on Tuesday evening that GMEE token contracts on Polygon were compromised in a hack attack that resulted in the theft of 600 million altcoins worth an estimated $15 million at the time. Here are the details…
Hack attack on Gamee! Altcoin price dropped
The exploit, discovered around 21:30 BST, saw Gamee’s Polygon GMEE distributor address compromised through unauthorized access to his GitLab account. According to an official statement, the stolen tokens were quickly converted into Ether (ETH) and Polygon’s native MATIC token via decentralized exchanges (DEXs). Gamee moved quickly to secure all unauthorized access to the token contracts, but the damage had already been done. The exploit triggered a massive selloff, causing the GMEE token price to drop a staggering 64% in the last 24 hours, falling below $0.01 at the time of writing.
While the company assured users that “community-owned assets have not been compromised,” the exploit has undeniably dealt a significant blow to investor confidence. Gamee stated that it would identify affected users and work on a plan to “support its loyal community during this challenging time.” However, this incident raises serious questions about vulnerabilities in the project and the broader GameFi space. Unauthorized GitLab access points to internal vulnerabilities that allowed the attacker to bypass Gamee’s defenses. This highlights the need to increase security measures in blockchain gaming projects, especially those that handle valuable in-game assets and tokens.
There is a huge loss
The attack also highlights the risks associated with centralized control in decentralized projects. While Gamee claims that it “does not store or manage any assets belonging to the community,” the fact that a single compromised access point could lead to such a large-scale theft raises concerns about the overall decentralization of the project’s structure. The investigation into the Gamee attack is ongoing and more details about the attacker and the methods used are expected to emerge in the coming days.
However, a $15 million loss is pretty critical. There’s also a shattered altcoin price and the rapidly evolving GameFi scene is sure to suffer. We’ll see if Gamee can recover from this incident and rebuild his trust with his community. The coming days and weeks will be crucial in determining the long-term impact of this exploit on the project and the broader GameFi ecosystem.
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