The GMX platform has undergone a serious security incident resulting in a massive $40 billion loss for users. The value of GMX Coin has dropped sharply, triggering concerns about future market volatility.
How Did GMX Coin Prices Drop So Drastically?
A considerable $40 million loss for customers became evident as the hack unfolded, driving the GMX Coin's value to fall sharply to $11.5, with a nearly 25% daily decline. The GMX team has yet to roll out a compensation plan, but its introduction could trigger a swift short position liquidation.
GMX's Response to the Cyberattack
In response to the cyberattack, the GMX team confirmed their awareness and ongoing investigation into the breach. 'The GLP pool on GMX V1 on Arbitrum was attacked. Approximately $40 million worth of tokens were transferred from the GLP pool to an unknown wallet. Security has always been a top priority for GMX, and smart contracts have undergone numerous audits,' the team stated. Immediate actions included the suspension of transactions and GLP minting on GMX V1 to safeguard users.
Consequences and User Warnings
This breach was isolated to GMX V1 and the GLP pool, leaving GMX V2 and other core GMX assets unaffected. The team assured that a comprehensive report on the breach would be issued when more details emerge. Notably, GMX released guidelines for those utilizing GMX forks, warning them of the vulnerabilities exposed by the attack. 'For all GMX V1 forks, the warning is that 'GMX V1 has been hacked.' Disable the leverage feature,' they advised.
The cyber attack on the GMX platform highlights the critical importance of security in cryptocurrency services. The GMX team continues to work on restoring security and informing users about potential risks.
