Sky Mavis secures $150M in funding round to reimburse users

Sky Mavis has announced raising $150 million that will be used to reimburse users that were affected by a massive hack on the Ronin Network. Sky Mavis is the video game developer behind Axie Infinity, a popular NFT-based game.

The Ronin network, which supports the Axie Infinity blockchain game, was hacked last week to the tune of $625 million. It is reported that the hacker conducted the breach a week before it was noticed and reported by Sky Mavis.

Sky Mavis raised $150M to reimburse users

After the breach of the Ronin Network, the platform was forced to restrict the ability of players to transfer money out of the platform. This was caused by the large number of funds that were channelled out of the platform by the hacker.

After the hack, and the platform’s failure to operate at full capacity, the number of daily active users has declined significantly. This has greatly affected the game that once ranked as a top blockchain-based game.

The capital raised to support Sky Mavis comes from some of the notable players in the cryptocurrency sector. The funds raised will be combined with the funds in the balance sheets of Sky Mavis and Axie Infinity.

One of the leading firms in the funding round was Binance. Binance is the largest cryptocurrency exchange platform globally by trading volumes. Besides reimbursing the players that had funds on the platform, part of the funds will also boost the platform’s security measures.

Besides Binance, the other users in this funding round include Paradigm, Andreessen Horowitz, Animoca Brands and Dialectic, a capital enterprise firm based in Switzerland.

Major breach on Axie Infinity

The NFT and crypto gaming sectors have increasingly become popular. This popularity has presented its own set of challenges because hackers are now targeting this sector to steal user funds and defraud investors.

Some of the veteran players in the crypto sector have already announced plans to venture into the gaming sector. FTX, a leading cryptocurrency exchange, announced that it would be launching its own gaming unit. The gaming unit would be used to lure players into endorsing NFTs in gaming. FTX plans to educate players about the benefits of NFTs in gaming before offering these digital assets to them.

Last month, C2X, a popular blockchain gaming platform, announced raising $25 million through a private token sale. Following the funding round, the company’s valuation increased to $500 million. The funding round was also supported by popular players in the crypto sector, including FTX Ventures, Animoca Brands and Jump Crypto. CryptoCom and Hashed also participated in the funding round.

Despite the growth and the success of the blockchain and NFT gaming sector, there is still concern over the security of these platforms. Besides, the NFT gaming sector and the traditional gaming sector have failed to achieve a high level of integration. Some traditional gamers have opposed the adoption of NFTs in gaming.