Millions of Axie Infinity Shards (AXS) Still Locked After Ronin Exploit

Axie Infinity Shards (AXS) locked as trading against wETH becomes impossible following Ronin bridge exploit.
  • AXS sank under $63 as millions of tokens cannot be accessed.
  • Sky Mavis presented Runes, Charms for Axie upgrades in Origin.
  • SLP again under $0.02.

As the dust cleared from the Ronin bridge exploit, the ETH and USDC tokens stolen were not the only loss. Effectively, users of the Katana exchange, the whole Axie Infinity ecosystem and in any staking protocols are locked out of their funds. 

So far, the Ronin network team is investigating the losses and attempting to blacklist all tokens stolen. 

The $630M in stolen assets have been compared to the Mt. Gox exploit, where traders that held BTC on the exchange are still waiting for their coins since 2013. 

Can the AXS and SLP be Freed

In theory, running the bridge again may be possible. The Ronin team has added extra validators that are not compromised. If the AXS is moved on the Ethereum network, it can also be traded back. However, this would spell the end of the Katana exchange. 

If the assets remain locked, someone would have to find the 173,600 missing ETH that were used to settle the price of assets on Katana. Since the DEX used algorithmic trading, without ETH the value of those assets would be zero. The reason for this is that the wETH on the Ronin network is not covered by the same amount of ETH tokens.

DappRadar also notes zero activity on the Axie network, based on Ethereum smart contracts connected to the game. The latest smart contract activity was four days ago, around the time of the Ronin exploit.

AXS Price Continues to Sink

The loss of AXS staking on Ronin added to the downward price pressure. AXS is now down to $62.91 just days after signs of recovery above $70. Despite the fact that Katana DEX only added a small amount of trading activity, the bad publicity of the hack weighed on AXS valuations.

RON kept unraveling, sinking to $1.74 while mostly relying on Gate.IO exchange trading on slim volumes. SLP sank to $0.019, joining yesterday’s losing trend. 

Axie Infinity Continues with Origin Launch

In a series of events, the Axie Infinity game will lead up to the Origin launch on April 7. The new game will add Runes and Charms mechanics, boosting the performance of all classes. 

https://twitter.com/Jihoz_Axie/status/1509556808246980609

Each Axie can equip one Rune and up to six Charms to boost each of the character’s six abilities.

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