A severe security breach that was related to the Grand Base token (GB) shook the crypto community and resulted in a loss of nearly $2 million. This event caused an almost complete fall in the price of GB, dropping by 99% soon after the information about the hack was released.

The Grand Base protocol, one of the most popular protocols for tokenizing real-world assets within Coinbase’s layer-2 blockchain, has just provided irrefutable evidence of the grave influence of a private key compromise that happened before dawn on April 15.

An administrator of Grand Base, as a result, addressed the matter in the protocol’s official Telegram channel, advising users to cease any activities with the hacked contracts. “Please take your LP down immediately. We apologize for this whole situation,” the admin wrote. The loss was first reported by the blockchain analytics firm PeckShield, which mentioned that the converted funds in Ethereum were transferred to an external address.

Response and Steps Forward

After the first disclosure, subsequent investigations showed that the attacker took advantage of the control over the deployer contracts to mint extra GB tokens that were then removed from the liquidity pools.

#CertiKInsight @grandbase_fi have stated via their Telegram channel that their deployer wallet was compromised and used to mint GB tokens

The incident has caused a >99% drop in token price.

525 ETH (~$1.7m) was bridged to Ethereum wallets pic.twitter.com/A0w1OmsKJG

— CertiK Alert (@CertiKAlert) April 15, 2024

This bootleg minting resulted in a swift devaluation of the GB token since the supply far exceeded the demand. As the disaster unraveled, Grand Base’s management updated that they were working on monitoring the hacker’s wallets and also with the centralized exchanges to prevent any funds from being recovered.

“The team is working round the clock to address the security breach and minimize any further risk to our users,” a spokeswoman from Grand Base observed.

Impact on the Grand Base Community

The value of the GB token dipped almost overnight as the market’s response to the hack was prompt. This radical fall not only impacted individual investors but also undermined the security features of some new blockchain protocols. Consequently, discussions within the Grand Base community have centered around the implications of the hack for future operations and the long-term viability of the GB token.

Users on various social platforms have expressed their frustrations and concerns, with many questioning the integrity of the project’s security systems. One community member stated,

“Please, don’t lose more money here. Abandon this and don’t deposit a single dollar more into this thing, whatever happens,”.

Read Also: What’s Next for XRP Price After the Breakdown of 15-Month Support?

The post Grand Base Token (GB) Price Plummets 99% After $2M Hack appeared first on CoinGape.

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Filed under: News - @ January 1, 1970 12:00 am