YEREVAN (CoinChapter.com) — Holograph, a platform for blockchain tokenization, noticed its token’s worth drop as a lot as 79.4%. A hacker exploited the system and created 1 billion HLG tokens, price $14.4 million, in keeping with Etherscan.
Holograph confirmed the hack on June 14 via their X account. They stated they fastened the issue and are working with cryptocurrency exchanges to freeze the hacker’s accounts. Additionally they began an investigation and contacted regulation enforcement.
Holograph Hack: 1 Billion HLG Tokens Minted, Value Drops 80%
The hacker created 1 billion HLG tokens in 9 transactions by benefiting from a wise contract flaw. The primary transaction occurred on June 13 at 9:47 am UTC, as seen on Etherscan. Seven transactions had been in batches of 100 million tokens every.
The exploit made HLG’s price drop rapidly. In 10 minutes, HLG’s worth began falling. Over 9 hours, it fell 79.4%, from $0.014 to a low of $0.0029. The market cap additionally dropped from almost $22 million to $4.8 million, in keeping with CoinGecko. HLG has since recovered barely to $0.008.
Hacker Converts $7.4M HLG Tokens to Tether
On the present price, the 1 billion HLG tokens at the moment are price $7.4 million. The hacker started changing the minted HLG into stablecoin Tether (USDT) about 4 hours after the preliminary exploit.
Matt Casto, a cryptocurrency researcher at CMT Digital, thinks the hacker may be a “rogue dev” who funded Holograph’s operator contract handle 26 days in the past. Holograph has not confirmed in the event that they know who the hacker is.
Holograph Enhances Safety After Main Hack
Holograph works inside the Omnichain ecosystem, which permits tokens to maneuver between blockchains whereas maintaining the identical contract handle. The platform is funded by enterprise capital from Animoca Manufacturers and Mechanism Capital.
Holograph is engaged on fixing the exploit and stopping future points. They’re collaborating with exchanges and regulation enforcement to guard consumer funds and cease additional losses.
The Holograph hack is a part of a much bigger downside of safety breaches within the crypto world. A report from Crystal Intelligence reveals that almost $19 billion in cryptocurrencies have been stolen for the reason that first hack in June 2011.
