The price of Elrond in free fall on Maiar DEX, an attack, or a project crash?

Most recently, a rare incident or rather a protocol attack happened with Elrond, causing the token price to have a flash dump of more than 92%. The price of EGLD on Maiar DEX suddenly dropped from 75 USD to 5 USD before this DEX had to suspend operations. So what happened?

According to the report obtained, 1.6 million EGLD tokens were “evaporated” in this attack. Three wallet addresses are the culprit in this attack:

At around 10:00 p.m. UTC on June 5, these 3 wallets received some tokens from the Binance exchange wallet address. They then use a smart contract to execute a “deploy” command (green lines in the image below).

After executing the “deploy” command, they call the “withdraw” command (the blue lines in the image above). And so these 3 wallets received a total of more than 1,600,000 EGLD.

Specifically, 3 wallets received 800,000, 400,000, and 450,000 EGLD tokens, respectively.

And after the attack, whatever comes will happen, the price of EGLD quickly “collapsed” more than 92% within just 38 minutes!

After receiving the token, they began to sell EGLD to USDC or in other words the EGLD/USDC pair on Maiar DEX. Maiar is a DEX exchange developed by the Elrond Network team, to serve the Elrond ecosystem.

Then there is the USDC swap on the Elrond network to USDC on Ethereum.

The attackers were able to dump about 950,000 EGLD tokens into $5.6 million USDC coins. After the Maiar exchange stopped working, the remaining 88,000 tokens were transferred to another wallet address.

In the end, this wallet transferred 38,000 tokens to Binance and still has 50,000 EGLD still in the wallet.

Fortunately, the Elrond development team had a timely response. They immediately “press the stop button” of Maiar floor operation to prevent this discharge.

Founder and CEO Elrond and Maiar reassured the community on Twitter:

The price of EGLD/USDT on the Binance exchange dropped to $65 at one point but recovered, currently trading around $68.

From the tweets of the project CEO, we still don’t know if the Elrond team has completely resolved this issue or not. How the attackers “printed” those EGLD tokens – we still need to wait for the dev team and security experts to explain more.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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Harold

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