THEO, which operates on the Base network, experienced one of its sharpest declines in history following suspicious token mining. According to data shared by blockchain security company PeckShield, the attacker generated 19 million THEO on the Base network.
The generated tokens were then sold on the market, converting them into 700.8 ETH. At the prices during the transaction, the total value of the Ethereum was estimated to be approximately $1.76 million. It was reported that the attacker transferred the obtained ETH from the Base network to the Ethereum mainnet.
Following the selling pressure, the price of THEO has fallen by approximately 92% in the last 24 hours. The influx of permissionless tokens into circulation has led to a rapid dilution of existing investors’ assets and a significant drain on market liquidity.
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While initial data suggests the incident was an attack, it is not yet clear which contract the vulnerability originated from, whether private keys were compromised, and whether the total loss is limited to $1.76 million.
*This is not investment advice.
Continue Reading: This Altcoin Crashed 92 Percent After the Attack: Millions of Tokens Were Minted and Converted to Ethereum