But its connection based, so if I have good connection then it connects me to other players with good connection. Thats how connection based matchmaking works
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That only applies if there is a healthy population. As soon as the number drop or you play at off peak times or your in a country with few local people, well then you get the fecal storm of lag because Bungle will match you against anyone left playing the game. Also, your IP address is exposed making it far easier for hackers to DOS and other IP attacks in Peer to Peer games.