A $2 million security breach causes the value of the Grand Base token to decrease by 99%.
Hackers seriously destabilize the market by minting unlawful GB tokens.
Grand Base monitors hacker wallets and steps up security.
A serious security breach involving the Grand Base token (GB) rocked the cryptocurrency world and cost around $2 million. After the news of the hack was made public, the price of GB fell almost entirely as a result of this event, plunging by 99%.
A private key compromise that occurred on April 15 before morning had a grave impact, as demonstrated by the Grand Base protocol, one of the most widely used protocols for tokenizing real-world assets on Coinbase’s layer-2 blockchain.
Grand Base’s administrator consequently addressed the issue in the protocol’s official Telegram channel and advised users to stop using the compromised contracts. “Kindly remove your vinyl record right away. We regret the entire incident,” the administrator stated. The initial report from blockchain analytics company PeckShield indicates that the Ethereum assets were transferred to an external address.
Answer and Next Moves
Further investigation following the initial disclosure revealed that the attacker exploited their control over the deployer contracts. This allowed them to issue extra GB tokens and siphon them out of the liquidity pools.
#CertiKInsight 🚨@grandbase_fi have stated via their Telegram channel that their deployer wallet was compromised and used to mint GB tokens
The incident has caused a >99% drop in token price.
525 ETH (~$1.7m) was bridged to Ethereum wallets pic.twitter.com/A0w1OmsKJG
— CertiK Alert (@CertiKAlert) April 15, 2024
Because this bootleg minting resulted in a huge supply gap, the value of the GB token quickly declined. Grand Base’s administration actively monitored the hackers’ wallets and collaborated with centralized exchanges to prevent any money laundering attempts.
“The team is working nonstop to resolve the security breach and reduce any additional risk to our users,” a Grand Base representative stated.
Effects on the Community at Grand Base
Due to the market’s quick reaction to the attack, the value of the GB token dropped practically overnight. This abrupt decline not only affected individual investors but also called into question the security of several recently developed blockchain platforms. As a result, the Grand Base community has been debating the long-term sustainability of the GB token as well as the effects of the hack on operations going forward.
Many people have questioned the integrity of the project’s security systems as they have voiced their grievances and worries on various social media channels. As one community member put it,
“Please, try not to lose any more money here. Whatever happens, give up on this and stop adding even a single dollar to it.
