Warning! Holograph’s HLG Token Plummets after Hack
Recently, the native token of Holograph, HLG, saw a staggering 80% drop in its value due to a malicious hack. The hacker exploited a vulnerability in the protocol’s operator contract, resulting in the creation of 1 billion HLG tokens initially worth $14.4 million.
The Exploitation of Holograph
After detecting the breach, Holograph acknowledged the incident through their X account. They assured users that the initial exploit had been fixed, and they were actively working with cryptocurrency exchanges to freeze the hacker’s accounts. Additionally, efforts were made to launch an investigation and engage law enforcement authorities.
- Holograph confirmed the breach
- Assured users of patched vulnerability
- Engaged with exchanges to freeze hacker’s accounts
According to data from Etherscan, the breach occurred on June 13 at 9:47 am UTC. The attacker leveraged a smart contract flaw to create the tokens in nine transactions, with seven of them involving batches of 100 million tokens each.
Rapid Depreciation and Recovery
Within four hours of the exploit, the hacker started converting the acquired HLG tokens into Tether. The 1 billion HLG tokens were estimated at over $7 million based on current market prices, marking a significant loss from the initial $14.4 million valuation.
- Token’s value dropped by 79.4%
- HLG’s market cap fell from $22 million to $4.8 million
- Price fell from $0.014 to $0.0029
Despite the steep decline, the token has since witnessed a modest recovery, showcasing resilience in the aftermath of the attack.
Suspected Rogue Developer
Analysis of on-chain data identified the ENS wallet ‘acc01ade.eth’ as a key player in the exploitation incident. Cryptocurrency researcher Matt Casto hinted that the hacker could potentially be a rogue developer who meticulously planned the attack almost a month in advance.
“Looks like a rogue dev who funded the address 26 days ago. That address was the one who received the minted supply,” Casto highlighted.
The Holograph Protocol, which falls under the Omnichain ecosystem, emphasizes consistent tokenization, seamless interoperability, and secure cross-chain asset transfers across various EVM blockchains.
Stay Alert and Secure Your Assets
It is crucial for cryptocurrency users to remain vigilant and take necessary precautions to safeguard their digital assets from potential security threats and hacking attempts. By staying informed and implementing robust security measures, you can mitigate the risks associated with such vulnerabilities in the crypto space.
Remember – your security and protection of your investments should always be a top priority in the ever-evolving landscape of digital assets. Stay safe and informed to navigate the crypto world securely!
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