A major security incident involving the Grand Base token (GB) caused great concern in the cryptocurrency world, resulting in approximately $2 million in losses. The price of GB plummeted nearly 100% following news of the hack.
Coinbase’s widely used Grand Base protocol for tokenizing real-world assets on its layer-2 blockchain has recently given undeniable proof of the significant impact of a private key breach that occurred early on April 15.
An administrator at Grand Base spoke up in the protocol’s Telegram channel, run by them, after discovering hacked contracts. They urged users to halt any interactions with these compromised contracts. “Kindly withdraw your LP (Liquidity Pool) right away. We deeply regret this turn of events,” the admin stated. The initial report of the theft came from PeckShield, a blockchain analysis firm, who disclosed that the stolen Ethereum had been moved to an external wallet.
Response and Steps Forward
Following the initial revelation, further probing uncovered that the hacker exploited their authority over the deployer contracts to produce additional GB tokens which were subsequently withdrawn from the token pools.
According to a post on the Telegram channel run by CertiKInsight at grandbase.fi, their deployer wallet has been hacked, allowing unauthorized production of GB tokens.
The incident has caused a >99% drop in token price.
525 ETH (~$1.7m) was bridged to Ethereum wallets
— CertiK Alert (@CertiKAlert) April 15, 2024
The illegal production of GB tokens led to a quick decrease in their value due to an oversupply compared to the market’s demand. As the situation worsened, Grand Base’s team announced they were taking steps to track down the hacker’s wallets and collaborating with exchanges to prevent any ill-gotten gains from being cashed out.
“Grand Base’s team is working day and night to resolve the security issue and lessen potential harm to our customers,” the company representative shared.
Impact on the Grand Base Community
The price of the GB token dropped significantly in a short period due to the market’s swift reaction to the hack. This sudden decline not only affected individual investors but also raised concerns about the security of some newly developed blockchain platforms. As a result, members of the Grand Base community have been discussing the potential consequences of the hack for the token’s future use and the overall sustainability of the GB platform.
On different social media sites, users have voiced their annoyance and apprehensions, some doubting the reliability of the project’s safety measures. A user in one community shared their concern, stating,
“I strongly advise against investing any more money in this. It would be wiser to withdraw your funds and refrain from adding any more, no matter the circumstances.”
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2024-04-15 22:10