Holograph’s native token HLG crashed 60% after a malicious entity hacked the operator contract, minting a billion tokens worth $14.4 million at prices. Holograph’s X account confirmed the hack today, adding that they have patched up the initial exploit and are working on freezing the hacker’s accounts with cryptocurrency exchange partners.
Holograph also posted on X that user compensation and refunds are live. They have provided a link to check eligibility and claim refunds on the official site.
Holograph introduced HLG Farming a few hours ago. After officially launching the HLG airdrop, the platform invited users to compete for a bonus by completing a series of quests with more info on the official site.
How did the HLG exploit occur?
The hacker minted a billion HLG tokens across nine transactions. He took advantage of a smart contract vulnerability. According to Etherscan, the first mint occurred on June 13 at 9:47 AM UTC. Seven of the transactions were made in batches of 100 million.
Within minutes of the exploit, HLG’s price started plummeting. The token had lost almost 80% within ten hours, down to an all-time low of $0.0036. HLG’s self-reported market cap dropped from nearly $22 million to $4.8 million.
At the time of writing, one HLG has recovered to $0.0075, but the price is still down – 49.12% in the last 24 hours. Its market cap is now at $11 million, and it is also showing signs of recovery. The omni-chain protocol holds promise. HLG can be transferred across chains and has full data persistence. It has native combinability, and the protocol has been used to mint millions of on-chain NFTs, making it one of the most widely used ones to create and distribute assets across blockchains.
Is now a good time to buy the dip?
Price predictions for the token were as optimistic as $0.01 by the beginning of July 2024 – before the hack. The price peaked at around $0.02 on June 6. The protocol works by burning tokens on the source chain, sending a message to the target blockchain, and then reminting an identical number of tokens to the same address. This eliminates slippage and unifies liquidity.
The potential recovery of HLG depends on the protocol’s refund policy, how satisfied the exploit victims are with it, and what measures Holograph takes to prevent similar hacks.
