Hamster Kombat and the Rise of Digital Cheating

Sep 24, 2024By Ambrose (CEO. 360º Crypto Arena)
Ambrose (CEO. 360º Crypto Arena)

The Real Scammer: A Case Study on Project Owners vs. Investors

In the world of blockchain gaming and decentralized finance (DeFi), there has been a long-standing debate over who the true scammers are when projects collapse: the project owners or the participants. The just-concluded case of Hamster Kombat, a project riddled with cheaters—gives us an insightful case study on this pressing issue. With over 2.3 million cheaters discovered, this situation forces us to look deeper into where the blame truly lies and what happens when investors or players, rather than the project owners, sabotage a system.

Hamster Kombat: The Breakdown

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Hamster Kombat, a blockchain-based game, was designed to incentivize players through its innovative gameplay and reward system using tokens. The system was meant to be fair, secure, and rewarding for those who participated genuinely. However, the discovery of widespread cheating revealed how the players—those the system was supposed to benefit—became its greatest threat.

Out of the 2.3 million cheaters flagged by the project’s anti-cheat algorithm, one individual alone connected over 400 different accounts to a single Binance address. Another investor recruited over 2,000 "friends," all of whom were quickly flagged by the system’s algorithm due to fraudulent activities. In another damning discovery, thousands of accounts were found to be logging in simultaneously and tapping into the system to mine the same pixel—an action that made it clear this was a coordinated, fraudulent attack on the game’s infrastructure.

The Impact of 6.8 Billion Tokens would have caused.

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These cheaters weren’t just trying exploit, they were on the verge of reveiving over 6.8 billion tokens via airdrop. If these actions hadn't been detected, the consequences for Hamster Kombat would have been devastating. The inflated token supply, manipulated by fraudulent players, would have caused massive devaluation. The game’s in-game economy would collapse under the pressure of hyperinflation, rendering legitimate users’ tokens worthless and permanently damaging the reputation of the project.

A flood of these tokens into the market would have led to a downward spiral in token prices, damaging investor confidence and forcing a liquidity crisis. Those who played by the rules would have lost their invested time, energy, hopes etc, and the project itself might have folded under accusations of being a scam.

Project Owners vs. Investors: Who Is to Blame?

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Interestingly, the Hamster Kombat case illustrates that in this instance, the project owners meant well from the very beginning and ready for the for the challenges ahead. They implemented an anti-cheat system and acted to detect and thwart malicious behavior. Yet, the players—those whom the system was built to reward—became the very reason the project was about to be treatened.

This raises a key question: Who is the real scammer in these situations?

Historically, when projects fail—especially in blockchain ecosystems—the default assumption is that the project owners are responsible. However, the case of Hamster Kombat shows that participants can equally be at fault. By exploiting vulnerabilities and engaging in fraudulent activity, these participants attempted to hijack the project for personal gain, with no regard for the damage they would cause to the broader ecosystem or to other investors / participants.

This does not mean that project owners are always innocent, nor that all players are fraudulent. There have been countless projects where the developers were the true scammers, disappearing with funds or manipulating token prices. However, the Hamster Kombat situation shows that players, too, can orchestrate large-scale frauds that can jeopardize the health of a project.

A Widespread Problem

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Hamster Kombat is just one case among hundreds of blockchain projects that have been accused of being scams (peddle by the vast majority of the scammer / cheaters themselves) when things go wrong. Often, when projects collapse, investors are quick to point fingers at the developers and project owners. But as this case illustrates, sometimes the players and investors themselves are the ones who compromise the system.

Had the Hamster Kombat anti-cheat system not flagged the suspicious activity, the game likely would have collapsed under the weight of token hyperinflation and fraudulent behavior. The project would have been written off as just another scam, even though the cheaters were the real culprits.

Conclusion

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In the blockchain space, not all project owners are scammers, and not all investors or players are cheaters. Hamster Kombat case study illustrates that projects can fail not because of malicious intent from the developers but because of coordinated, fraudulent actions from the very people the project was designed to benefit.

The lesson here is clear: in decentralized ecosystems, both project owners and participants bear responsibility for the success and integrity of the system. Investors and players need to understand that their actions can make or break a project, and project owners need to continue evolving their security measures to protect against exploitation.

In the end, the blame lies with the vast majority—whether they are unscrupulous developers or malicious investors—who undermine trust and manipulate systems for personal gain. As the Hamster Kombat case shows, preventing exploitation is key to ensuring the long-term viability of decentralized projects, and when projects fail, it’s crucial to examine the full picture before casting judgment, I am happy that Hamster Kombat is a success already!.