A decentralized exchange native to the Elrond Network – the Maiar Exchange went offline after suspicious activity, resulting in a drop in the price of EGLD.
The Maiar exchange confirmed the suspicious activity, and in a Twitter thread, Elrond Network co-founder and CEO Beniamin Mincu revealed that an exploit area was identified by his team and that they just had to address and alleviate it immediately.
The DEX went under maintenance mode, with Mincu announcing that an emergency fix was being implemented, while some Twitter users feared the worst. All transactions on Maiar are suspended!!! tweeted one Twitter user. Remember what I said about a big dump coming when this turns on.
On Sunday, Elrond’s native token lost more than 7% of its value, with EGLD falling from $75. Fortunately, despite the price drop over the last day, EGLD has recovered slightly from a low of $65.50.
The exploit, however, caused downtime and a subsequent drop in the price of EGLD, and on-chain analyst Foudres explained how the attackers can withdraw more than 1.65 million EGLD in a Twitter thread.
Mincu provided a fairly thorough update on the team’s progress, sharing updates on Twitter:
It’s still all hands on deck for the team. We’re almost there with the full recovery plan. Two quick upgrades are being tested. Everything appears to be in order. If the test goes well, I’m hoping to share a step-by-step restart plan in 4-5 hours. Thank you for your assistance.
Elrond (eGold, or EGLD) is the native coin of a blockchain that employs sharding, which divides crypto infrastructure into smaller pieces to aid network scaling.
Beiamin has since posted a video on YouTube outlining the recovery plan and providing an overview of the last 24 hours and said:
You can pretty much assume that this type of crisis will affect all blockchains and, most likely, all dApps.
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