How the recent crypto heist heightened the importance of a backup wallet

Cryptocurrency runs on smart contracts, which adds up an extra layer of security. However, tech-savvy fraudsters can target the blockchain to take away millions of dollars through hacking, just like what happened with Axie Infinity. How did this crypto heist heighten the importance of a backup crypto wallet?

The Ronin Network of Axie Infinity disclosed a security breach on March 23, 2022. According to the network’s developers, the Sky Mavis and Axie DAO validator nodes have been compromised. The Ronin bridge was drained with 173 600 ETH and 25.5 million USDC in two transactions. The attacker forged withdrawals using private keys that had been hacked. The developers identified the attack after a user complained that he couldn’t get his 5K ETH out of the bridge.

Players earned real money from playing NFT games

Axie Infinity became a great source of income for many, especially in countries such as the Philippines. People from this country have proven that this NFT game is a great way to earn money amid the lockdown.

With that, Axie Infinity had garnered an excellent chart in 2021. Its token, the SLP, recorded an all-time high of 0.399 last July 2021. Many investors were enticed to play the NFT games because of that. In addition, its users went over 2 Million worldwide; 40.53% of that is from the Philippines alone.

Despite that, the NFT game also experienced a dip along with other cryptocurrencies, and is still recovering. Many people are still waiting for the price to go up again. Then came another concern, the hackers.

Due to a security breach, Ronin Network lost over 601 Million USD (price at the moment of writing) worth of ETH. Because of that, users cannot withdraw or deposit funds while the network ensures that the drained funds will be returned to the victims.

Despite the smart contract that ensures blockchain security, underlying problems could still arise in the crypto space. One of the best examples is the event that happened on Axie Infinity. Since the network disabled the withdrawal and deposit features, users who depend financially on the NFT game suffered during the suspension. With that, it is good to have a backup wallet in which you can store your extra assets.

Read More: How the recent OpenSea incident taught us about the importance of fund security

These extra wallets could be a different Metamask account in which you can transfer your funds. You could also use DEXs to store your digital assets or leverage them by staking these assets to farms and pools. You could also keep it in exchanges such as Binance, which allows you to diversify your funds. Lastly, you could also purchase crypto debit cards that you can use to save your cryptocurrencies and also use them as fiat currency in a real-world transaction.

To this end, PrivacyCard can help. PrivacySwap built PrivacyCard aiming to bind fiat to crypto transactions. In addition, PrivacyCard will provide convenience to its users in withdrawing their funds within a few clicks.

We always envision a DeFi space that is secure and offers more opportunities to earn. PrivacySwap utilizes DeFi’s secure smart contracts while providing a utility-focused service. In unfortunate events such as exploits, we believe that we can be a solution to such a problem with our PrivacyCards. Everyone can still use their saved funds while waiting for the responsible people to resolve the issues.

Conclusions

Cryptocurrency may be volatile, but it is a good alternative to traditional funds. However, a security breach is still inevitable. There are still people out there who aim to take away all your funds in an instant. So, everyone must still stay vigilant.

Despite that, there are things that we can do to prevent these events. Things such as having an extra account or wallet can help you avoid losing all your funds if the situation arises.

We always want to help users prevent these situations and expand our offerings. We aim to provide an all-in-one ecosystem and ensure that everyone’s fund is safe, secure, and easy to use anytime.

Come and join us in a better DeFi space.

PrivacySwap Update

Hey everyone, here’s our update for this week:

On migration and the new UI: Part of our DEX migration is the overhaul of our UI, which as you can see in the visual shared, is nearly complete. Save for some intricate admin stuff that we are working on, the DEX ecosystem is rolling out on the backend.

The NFT withdrawals: These are done for the most part. Right now, we are collating and confirming the number of PRVG to mint for the drop. Probably done today or tomorrow latest and airdropped. Note that the PRV2 tax airdrop will be happening at the same time.

Afterwards, we are ready to proceed with the swapping phase.

We thank you for your continued support and belief in the long-term vision of our project.

Stay tuned for another update towards the end of this week!

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