Holograph’s native token, HLG, has witnessed a dramatic 80% drop in value, as shown by CoinMarketCap data, following the platform’s recent security breach, which resulted in a loss of $14.4 million.
Suspected malicious actors had exploited Holograph’s operator contract to mint 1 billion HLG tokens. This exploit caused the token’s price to plunge from $0.014 to $0.0029 within ten minutes.
In response to the hack, the Holograph team issued a statement confirming the attack and their efforts to remedy the situation.
“The Holograph Operator contract has been exploited by a malicious actor, enabling the hacker to mint 1 billion additional HLG.The team has patched the initial exploit & is working with exchange partners to lock the malicious accounts. The team has launched an investigation & is in the process of contacting law enforcement,” the statement read.
According to Etherscan data, the breach involved nine transactions starting on June 13 at 9:47 am UTC. Meanwhile, Matt Casto of CMT Digital has speculated that the hacker might be a “rogue developer” who had funded the operator contract address 26 days prior to the attack.
So far, the platform’s team has not provided specific details on the motive and identity of the attacker.
Holograph, which is part of the Omnichain ecosystem, plays a crucial role in enabling tokens to move between blockchains while maintaining the same contract address. The platform introduced the token and released its tokenonomics in May 2024, stating that it was designed to facilitate seamless transfer across different blockchain networks with complete data persistence and minimised cross-chain bridge risk. The tokenomics plan includes allocations for ecosystem growth, core development, strategic partnerships, and community initiatives and is scheduled to take place over 48 months.
Meanwhile, the platform also made headlines in the same month after its team announced the successful completion of a $3 million strategic funding round. This round was led by Mechanism Capital and Selini Capital, bringing the total funding to $11 million. The funding was aimed at enhancing Holograph’s omnichain gaming vision and expanding its technological advancements.
Disclaimer: The price of Holograph’s HLG token, as mentioned in this article, is subject to rapid changes and may not be stable. Investors are advised to conduct their own research and consider market volatility before making any investment decisions. This information does not constitute financial advice.
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