BTC

$61418.718

-1.35%

ETH

$2987.604

-0.16%

BNB

$596.442

2.37%

XRP

$0.514

-1.07%

Glossary

Infinite Mint Attack

November 21, 2023 - Around 2 mins mins to read

Understanding the Infinite Mint Attack

An Infinite Mint Attack, also known as token minting attack, is a malicious act where an unauthorized entity or hacker creates an excessive number of tokens within a protocol. This unauthorized creation of tokens leads to a significant increase in the token supply, which ultimately devalues each individual token. The attackers then proceed to sell all the minted tokens on the market, causing a substantial crash in the token’s price. These attacks are executed swiftly, allowing the attackers to make millions of dollars from the tokens.

Blockchain systems are particularly vulnerable to this type of attack due to security vulnerabilities that hackers exploit, such as bugs and weaknesses in the code. One notable example is the Cover Protocol attack, where hackers took advantage of shield mining contracts to gain unauthorized crypto rewards from the protocol.

In the Cover Protocol attack, the attacker successfully exploited a staggering 40 quintillion tokens within the Cover staking pool, resulting in a drastic 97% drop in the token’s price. By utilizing the 1inch exchange, the attacker managed to liquidate more than 11,700 coins, stealing approximately $5 million worth of tokens.

To mitigate the risk of infinite mint attacks, it is crucial to conduct comprehensive smart contract audits by multiple firms. However, it is important to acknowledge that even with audits, protocols may not be entirely immune to such attacks.

Avatar of Coincu

Author

Coincu

Glossary

Infinite Mint Attack

Understanding the Infinite Mint Attack

An Infinite Mint Attack, also known as token minting attack, is a malicious act where an unauthorized entity or hacker creates an excessive number of tokens within a protocol. This unauthorized creation of tokens leads to a significant increase in the token supply, which ultimately devalues each individual token. The attackers then proceed to sell all the minted tokens on the market, causing a substantial crash in the token’s price. These attacks are executed swiftly, allowing the attackers to make millions of dollars from the tokens.

Blockchain systems are particularly vulnerable to this type of attack due to security vulnerabilities that hackers exploit, such as bugs and weaknesses in the code. One notable example is the Cover Protocol attack, where hackers took advantage of shield mining contracts to gain unauthorized crypto rewards from the protocol.

In the Cover Protocol attack, the attacker successfully exploited a staggering 40 quintillion tokens within the Cover staking pool, resulting in a drastic 97% drop in the token’s price. By utilizing the 1inch exchange, the attacker managed to liquidate more than 11,700 coins, stealing approximately $5 million worth of tokens.

To mitigate the risk of infinite mint attacks, it is crucial to conduct comprehensive smart contract audits by multiple firms. However, it is important to acknowledge that even with audits, protocols may not be entirely immune to such attacks.

Visited 83 times, 1 visit(s) today

Leave a Reply