This week, the GMX exchange saw a resurgence in activity following a hacking attack, leading to a significant increase in interest in its services and token.
Hack Attack on GMX and Its Aftermath
The beginning of the week was marked by a hack on the GMX exchange, which resulted in over $40 million being stolen from the GLP pool on Arbitrum. According to a preliminary investigation by the GMX team, the attacker exploited a vulnerability in the OrderBook contract to manipulate prices and profit. Trading on V1 and GLP token minting were halted, and similar measures were taken on the Avalanche side.
Return of Funds Sparks GMX's Resurgence
In response to the attack, the GMX team offered the attacker a $5 million bounty for returning the funds, promising not to take legal action. The attacker confirmed the intent to return the funds, marking the first sign of the refund process starting. With GMX operations suspended on Arbitrum and Avalanche, the platform halted GLP minting and burning transactions to protect user interests.
Market Impact and GMX's Future
The market reacted positively to the news of the fund return: the GMX token price surged by 17% within minutes. The project recorded a total trading volume of $306 billion and open positions totaling $265 million. GMX's efforts to restore its reputation inspire investor confidence and raise questions about security within the decentralized exchange ecosystem.
The events surrounding GMX highlight the importance of security in cryptocurrency platforms and demonstrate how quickly such incidents can impact the market and user activity.
