Play-to-earn (P2E) crypto games are unfolding as one of the popular blockchain applications. They would likely increase susceptibility to threats like scams and money laundering, especially when this situation of crypto winter melts.
There is no denying that recently, the P2E crypto tokens have crumbled in value just like several other aspects of the crypto ecosystem. However, the financial regulators must pay attention to P2E crypto (GameFi) because this gives us a brief idea about the several types of financial crime complexities.
A cyber security auditing firm stated that the GameFi projects are working with their major focus on profits, amidst which they are neglecting the security aspect. This is posing a great risk to these GameFi projects and their gamers.
Hacken’s View on P2E Crypto Projects
In a report shared with Cointelegraph, Hacken, the cybersecurity auditor, mentioned that according to the data, the GameFi projects that cover the ambit of P2E games; pay more attention to profit than security. They often release products without adhering to adequate precautionary measures against hackers.
In addition to crypto, P2E games often include NFTs in their ecosystems. Some of the largest projects like Axie Infinity (AXS) and StepN (GMT) tend to use several products crafted to enrich the gaming experience. These include token bridges, blockchain networks, or physical merchandise.
Based on the data crypto security ranking service CER.live., the Hacken researchers observed severe inadequacy, specifically in GameFi cybersecurity. As per the data, out of the 31 GameFi tokens that were considered, not a single one received the top security ranking AAA. Additionally, 16 received D, the worst score on the board.
Details of the Report
The report ranked each project based on several cybersecurity aspects. For instance, in the case of token audits, the report considered aspects like the presence of bug bounty and insurance and if the team is public. The report states that these GameFi projects scored low precisely because of the lack of insurance coverage.
Dan Thomson, the chief marketing officer of InsurAce, a crypto insurance firm, partially confirmed it. Plus, only two projects, namely Axie Infinity and Aavegotchi, have bug bounties that provide monetary compensation to white hat hackers if they find bugs in the project’s code.
Moreover, while 14 projects have received a token audit, merely 5 have undergone a platform audit that could perceive potential security holes in the ecosystem of the project. Those five projects are Aavegotchi, The Sandbox, Radio Caca, Alien Worlds, and DeFi Kingdoms.
According to the report, the Ronin token bridge of Axie Infinity positioned for one of the largest hacks of the crypto industry which cost a loss of $600 million in tokens. The token bridges like this are a vulnerability for P2E games.