NetMind, the innovative blockchain artificial intelligence (ai) platform, has firmly denied allegations of a platform-wide hack that have been circulating in the cryptocurrency community. The recent price drop of NetMind’s token, NMT, has sparked concerns among investors about a potential exploit that could lead to an unlimited generation of tokens.
Background: NetMind’s GPU Mining Platform
NetMind is a decentralized platform that allows GPU owners to process data and earn tokens, NMT, in return. The incident that led to the rumors began when NMT experienced a significant decrease in value following a large sale of tokens.
Speculation: Possible Mint Exploit
The sudden sale of a large number of NMT tokens led users on social media platform X to speculate about a potential compromise of the NetMind platform. This prompted fears that an attacker could have exploited a minting function and generated an unlimited number of tokens, thereby diluting the value of existing NMT holdings.
NetMind’s Response: No Platform Compromise
In response to these concerns, NetMind issued an X post reassuring stakeholders that the platform was secure and not compromised. The company conducted a thorough investigation and identified the issue to be linked to one of the early miners, who had mined an unusually large number (440,000) of NMT tokens.
Market Response and Recovery Efforts
Following NetMind’s clarification, the token’s price experienced a recovery. At the time of publication, NMT had rebounded to $8.54 from its lowest point during the incident ($11.34 to $2.77). The token’s price was down by only 14% from its pre-incident value, suggesting that the market had absorbed the initial shock and the subsequent rumors.
Blockchain data from BNB Smart Chain revealed that the address responsible for selling multiple batches of NMT tokens had transferred them to PancakeSwap. While these transactions were identified, it remains uncertain whether they directly contributed to the initial price decline.
At the time of writing, NMT is trading at $8.85 and has lost 26.21% in value over the past 24 hours, as reported by Coinmarketcap.
