Key facts
- Harmony's ONE token dropped 26% in value.
- An alleged exploit minted approximately 4 billion ONE tokens.
- The exploit increased the token supply by over a quarter.
- The blockchain is working with exchanges to freeze funds.
- A network rollback is being considered.
The price of Harmony's ONE token has seen a sharp decline of 26% in the wake of an alleged exploit that resulted in the minting of approximately 4 billion new tokens. This event significantly increased the total supply of ONE tokens by more than a quarter, directly impacting its market value. In response to the incident, the Harmony blockchain team is working closely with various cryptocurrency exchanges. Their objective is to freeze any funds that may have been acquired through the exploit, thereby preventing further illicit movement or liquidation. Additionally, the team is actively evaluating the feasibility and potential consequences of implementing a network rollback. Such a measure could potentially revert the blockchain's state to before the exploit occurred, aiming to restore the token's supply and value. The full extent of the exploit and the effectiveness of the proposed mitigation strategies are still under assessment.