NetMind Denies Security Breach Claims, Attributes NMT Price Plunge to Single Miner's Sell-off
Summary:
NetMind, a blockchain AI platform, rejects rumors of a security breach on March 15, maintaining that the exploit affected only an individual miner and not the platform. Speculations arose after a large sell-off led to a significant drop in the value of its token, NMT. The NetMind team stated it is taking active measures to resolve the situation, marking the initial price drop to the sale of 440,000 tokens by an early miner. Consequently, the value of NMT rebounded, standing just 14% lower than its initial price before the issue.
NetMind, a blockchain artificial intelligence (AI) platform, has refuted claims of a security breach on its platform on March 15th, insisting that the breach only affected a single miner and didn't compromise the platform. This assurance from NetMind emerged after its token, NMT, saw a sharp decrease in value due to a substantial sell-off, leading to suspicions of a full-scale breach.NetMind, a platform that uses AI, is a cloud computing service that rewards graphics processing unit owners with tokens in return for processing data. It operates on a blockchain network referred to as “NetMind Chain,” on which the token, NMT, exists.The value of NMT significantly dropped by approximately 76% from $11.34 to $2.77 at around 1:15 pm UTC. This steep fall led to speculation that NetMind may have fallen victim to a mint exploit, where an attacker could potentially generate an endless number of tokens and subsequently flood the market, thereby devaluing the token. At 4:19 pm UTC, the NetMind team posted on X, vehemently denying such rumors. They stated that they were aware of the large $NMT sell-off and were actively working to reassure investors and manage the situation. They also mentioned that the initial price drop was linked to the selling of 440,000 tokens by one of the network's early miners. They also affirmed that the platform had remained secure and unaffected by any breach or malfunction.Markets appeared to stabilise after this statement. At the time of reporting, the token’s value had rebounded back to almost its original price, standing at $9.70, a 250% increase from its lowest point. Consequently, the value of NMT had only decreased by 14% from its original value before the incident.An X post from an investor in DeFi, @0xAlan_, suggested he had located the hacker's address responsible for the drop in price. He stated, “The wallet in question is: 0x4484771fa71bf0c1C679e452e57F3a5CD9E60220.” Evidence from data on blockchain on the BNB Smart Chain shows multiple batches of tokens being transferred from the NetMind chain, to the BNB Smart Chain and then sold on PancakeSwap. However, it was not possible to ascertain whether these sales took place at the exact moment of the price crash.
Published At
3/15/2024 8:27:15 PM
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