Why the recent $550 million DeFi hack could have severe effects on Axie Infinity price


  • Axie Infinity price plummeted 7% in response to the $600 million hack on the Ronin network. 
  • The Ronin bridge and Katana Dex have been halted following the recent exploit, costing over $550 million in Ethereum and USD Coin. 
  • According to an official statement, developers are currently working with law enforcement to get funds recovered or reimbursed. 

Axie Infinity price took a massive hit in response to the news of the hack on the Ronin network. The project's official Discord, Ronin network's social media, the Substack page, the Ronin bridge and Katan DEX have all been halted after the network suffered an exploit worth $550 million. 

Axie Infinity price plunged with a $550 million exploit on Ronin

Ronin network developers believe the attacker used hacked private keys and forged fake withdrawals, draining funds of the Ronin bridge within two transactions. The hack occurred on March 23; however, it was discovered on March 29, 2022, when a user attempted a withdrawal of 5,000 ETH and failed. 

The hack has resulted in a drop in RON, Ronin network's governance token's price. The chain had nine validator nodes, of which five private keys were hacked to gain access to the funds. 

Axie Infinity's official Discord channel, Katana DEX, Ronin bridge and Ronin's social media was halted as developers sought support from law enforcement to ensure reimbursement of lost funds. Developers issued a statement saying they are

Currently working with law enforcement officials, forensic cryptographers and our investors to make sure that all funds are recovered or reimbursed. All of the AXS, RON and SLP [tokens] on Ronin are safe right now.

Based on an announcement on the official channel, the exploit consisted of 173,600 ETH and 25.5 million USDC. This totals over $550 million. 

Analysts have evaluated the Axie Infinity price trend and predicted a bear market in the gaming token. 

 


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