Gitcoin Misplaces $460K in Tokens Due to Irreversible Transfer Error
Summary:
Gitcoin, a platform designed for cryptocurrency developers, has inadvertently lost nearly $460,000 worth of GTC tokens after mistakenly transferring them to an irreversible contract address. Around 521,440 GTC tokens were trapped, which were valued at approximately $461,000. The mishap was acknowledged by Gitcoin's lead, who assured increased diligence and improved procedures to avoid such mishaps in the future. GTC's price has shrunk by 1.1% and the overall slump has reached a massive 99% since reaching its peak in May 2021.
Gitcoin, the platform created for cryptocurrency developers, has confessed that it has misplaced nearly $460,000 worth of Gitcoin (GTC) tokens. They were accidentally transferred to an irreversible contract address. The event was narrated in detail by the project leader, “CoachJonathan”, on the Gitcoin governance forum on October 6. He stated that the GTC treasury had allocated funds for a merger of merchandise, memes, and marketing, which were mistakenly sent to a GTC token contract and not a multisignature address. The funds are irretrievable and remain trapped in the contract. The transaction error resulted in the loss of 521,440 GTC tokens, which were trading at slightly under $0.90, amounting to an estimated loss of $461,000. Gitcoin core developers initiated efforts to investigate the possibility of a withdrawal function or contract upgrade but were forced to flag the funds as lost when neither option was viable. The team has pledged to implement procedures to ensure such mistakes are avoided in the future and to establish more precise accountability in the event of any future incidents. The leader emphasized that the holders of large tokens and those authorized for multisig transactions must exercise extreme caution while dealing with funds belonging to others. Umar Khan, a researcher at Gitcoin, suggested that the Decentralized Autonomous Organisation (DAO) could view the lost tokens as a reduction in GTC supply rather than a treasury funds loss. Critics argue that the current state of cryptocurrency user experience is regrettable if such errors are possible. Gitcoin enables funding for Web3 developers performing open-source work. Here project owners and developers can post their projects and benefactors can pick the projects they wish to fund. GTC's price has dipped by 1.1% in the past 24 hours and was observed trading at $0.889 when last reported. Also, the token has plummeted by a massive 99% since reaching its peak of $89.62 in May 2021 as per CoinGecko records.
Published At
10/9/2023 4:02:28 AM
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