Do not trust, verify – Last weekend was especially busy on the crypto market. Bitcoin chained his fifth week of declineSolana was at a standstill for several hours, and Bored Ape Metaverse was literally skyrocketing cost on the Ethereum blockchain. Bitcoin, Altcoin, NFT everything was there, or almost … to this losing trifecta of bad news was added a major flaw that was “discovered” in the DeFi Kingdoms play-to-earn protocol. An “exploit” allegedly reported by the community on the project’s Discord server last January.
Fear of the crypto kingdom
Launched in September 2021 on the Harmony blockchain, the play to earn DeFi Kingdoms †DFK) has established itself in recent months as a very serious contender for the throne in this sector. With a peak of over 32,000 daily users in December, DFK is positioned as one of the Axie Infinity’s main competitors† The latter has long been at the forefront of the sector, both in terms of daily volume and number of active players. Developed on Harmony, the game was ported to the Avalanche blockchain hosting DFK on one of his subnets dedicated, the DFK Chain.
More activated and used more than Harmony, Avalanche therefore offered good prospects for the project play-to-earn, enough to delight the current community and early investors. But since the opening of Crystalvale (the extension to Avalanche) on March 30, DFK’s economy seems to have collapsed. The selling pressure is constant.
† Buy the rumour, sell the news » – So far nothing abnormal if we have already followed project launches and the effects of positive announcements. Market players always anticipate value future of the asset, which is why we often speak of ” prize winner a short story. As a general rule, an announcement will incentivize the price until such time as the announcement takes effect. But meanwhile, the market is already priced The new one. Here the last peak ($11.52) dates to March 30, the day Crystalvale was launched. Typical example of an announcement effect than the entry into force of this announcement and their impact on prices, some will say.
Of the agricultural pools in front of ” from people » open there while you wait for NFTs and other features already present in version 1 of DFK (Serendale) are available. If the price went through a retracement and then a slight rebound after March 30, it was the last. Red weeks followed, with constant selling pressure, but for no apparent reason, for mere mortals. The roadmap remains very interesting and ambitious, with a long-term vision. The game has been expanded to a new channel, the JEWEL (DFK cryptocurrency) is now used to pay transaction fees on the Avax subnet hosting Crystalvale. This amounts to “burning” and reducing the circulating mass.
The view seemed clear, the horizon clear and the course determined. But looking at the graph, it was clear that something was going on, that the foundation wasn’t as pretty as the whole community thought. It was late last week that the community learned more.
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Cold shower for the DeFi Kingdoms community
A weakness to take advantage of of one of the game’s mechanics is revealed. The hours pass, the community mobilizes and researches the blockchain† Little by little it becomes clear: something was good Behind the scenes. It was on Twitter that the information started to gain attention, thanks to research and sharing by frequent DFK users. And especially these two screenshots, which set the gunpowder on fire.
The announcement was hard: a malfunction has been present for several months was actually exploited, allowing evil spirits to much of the mined JEWEL . redirect every day. The same JEWELS that are immediately put on the market, creating a very strong selling pressure.
One of the available hero quests (NFT in-game) is JEWEL mining. The heroes are sent as a team and collect the precious token for you. Next one the leader miner and his stats from mining (plus that of his companions engaged in the quest), the heroes collect JEWELS. The rewards are also calculated based on the number of JEWELS locked (through turn of Where Agriculture) you own. These tokens are mainly obtained through the “gardens”, which are actually the pools of Agriculture† But if this ” locked JEWEL » are indeed locked by the smart contract (until the date stated in the project documentation) and therefore unsaleable, they were transferable from wallet to wallet†
Frisky Foxfounder of Defi Kingdoms spoke on the official Discord, via a message then passed on the medium of the project:
† Currently there is an issue where the proceeds of locked JEWELS through the mining quest can be unfairly increased by transferring all locked JEWELS between multiple accounts, causing more heroes than intended to mine locked JEWELS at the same time† †
Medium of the DFK project
Without going into the technicalities and economic mechanics of the game, the smartest (or the most informed…) have taken advantage of this shortcoming by increasing their yields in a very simple way, allowed by the architecture of the smart contracts Game.
The king is dead, long live the king?
Often praised for his responsiveness and his daily work (last year seen weekly on Serendale), the team by Defi Kingdoms completely missed of this (big) hole in the racket. And that’s an understatement, as the story may be even darker and sadder for early investors. As for anyone with put his trust (and his money† in the team by Frisky Fox.
If you’ve read the first photo in the tweet above carefully, you must have noticed that a user claims to have discovered this error last Januaryie 4 months ago… But this error just repaired by the team, while it the economic model seriously threatened of the game, making it unfair for the majority of players in addition to sending the JEWEL to the abyss.
But the more you pull the reel, the more you discover… As the screenshots show, the bug reported in January was put before a community vote to decide whether or not to keep the original mechanics. The mood was without appealthis problem had to be resolved.
But this weakness was never fixed, allowing some to take advantage of it and endanger the entire game.
On the price side, these announcements seem to have put an end to the frenzied selling pressure. At the same time after a -94% of ATH, there’s not much left to sell! In addition, a concrete explanation is now available for a large part of the community about the course of the JEWEL. Does this mean that the market was engaged in: prize winner ” this mistake? Now that it’s been publicly acknowledged and patched, can the price go up again?
Only a crystal ball can tell us that. Investors who cannot bear the sudden drop in JEWEL’s price or who have lost all faith in the team (or both at the same time) are faced with a difficult choice, leave or stay, wondering if the worst is behind them. Again, events like this remind us how much you should be careful when dealing with cryptocurrencies and assumed annual returns represented by two, three… or even four digits.
The volatilitythem promises of easy profits a few clicks are legion, but their promoters never dwell on the risks involved. more the yield announced is strong, the more the risk you take is strong. It is therefore important to invest money that we do not need today and that we will not need in 6 months, in case of difficult times. Stay alert, sober and don’t trust, verify †
The project DeFi Kingdoms enjoys a strong popularity rating and an invested community (not just financially) that believes in the long-term potential of play to earn. The fate of Frisky Fox was voted on and the latter has been widely acclaimed, so he will remain at the head of the project. We hope the team regains momentum from late last year when the Kingdom dethroned Axie Infinity in terms of daily volumes at the start of 2022.
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