FNX, the native token of FinNexus protocol, suffered a massive hit on Monday, plummeting over 90 percent after the contract was supposedly hacked.
FinNexus Team Says Crypto Contract Was Hacked
FinNexus is an application layer DeFi protocol that allows developers, service providers, and project participants to easily interact with blockchains. FinNexus has its own utility token called FNX, which plays an important role in the functioning of the ecosystem and it relies on an ERC-20 smart contract.
The development team confirmed the incident in a tweet, saying that the ERC-20 contract was hacked. They instructed FNX investors and traders to withdraw their funds from the pool for safety reasons.
Although the FinNexus team claimed that the token’s contract was compromised, DeFi researcher Chris Blec suggests otherwise.
According to Blec, someone stole the admin key, which enabled them to change ownership of the contract to a new address. They were able to create more FNX tokens, only to sell them a few minutes later. This resulted in a massive decrease in the token’s value.
FNX Price Update
At the time of writing, the FNX token was trading at around $0.06 USD on CoinMarketCap. After dropping over 90% in price, it has recovered a little but it’s still more than 80 percent decrease in the token’s value over the past 24 hours. The market capitalization is also down to around $2.2 million USD.
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