XEN Price Crashes 33% After Exploiter Mints Millions of Tokens
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The XEN token has crashed by over 33% following an exploit.
The project is also experiencing a Sybil attack, with 80% of participating addresses being Sybil addresses.
XEN may face a bigger drop as the minting attack is still ongoing.
The price of the controversial XEN token has crashed by over 33% after experiencing both a Sybil attack and a minting exploit that saw the attacker mint over 100 million tokens.
The price of the controversial XEN token has dropped by more than 33% after someone exploited an FTX gas loophole. The attacker has minted over 100 million XEN tokens through the loophole, and the attack is still ongoing.
The project initially made the headlines for allowing users to mint tokens with only a gas fee involved. The whole intention of the project raised suspicion that it may have been a scam, but an exploit like this was not brought up.
The attacker deployed a contract to launch the attack on Oct. 10. They then used the FTX exchange hot wallet address to continuously transfers small amounts of ETH to the attack contract. Each transaction creates 1 to 3 subcontracts, and these then perform a mint to claim the XEN tokens. All of these are paid for by the FTX hot wallet address.
The attack is still in progress, so the attacker could very well get away with more minting. The vulnerabilities being exploited are the fact no restriction on the transfer gas limit.
A Sybil attack
Reports have also emerged that the XEN token is also experiencing a Sybil attack.
A Sybil attack is when one system operates multiple fake identities on a P2P network, with each identity performing its own transactions. There are multiple types of such attacks, including batch transfer Sybils, which took place on XEN.
There are at least a total number of 335,000 Sybil addresses, amounting to roughly 80% of participating addresses
XEN token drops to $0.0001 following attacks
With both the exploit and the Sybil attack affecting the network, the future of XEN looks bleak. The token has tanked in price and may face further downfall depending on how the next few days play out. The current price of the token is $0.00009.
The XEN token was advertised as a token where its value was derived from the community, but that no longer looks like it holds true. It made headlines for burning $1.85 million in ETH gas fees in a single day.
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