XEN crypto drops 39% as it faces more attacks

XEN crypto drops 39% as it faces more attacks

The newly launched XEN Crypto is down 39% in the last 24 hours after a user found a way to create over 100 million tokens on FTX without paying gas fees.

Leverage coins over 100 million tokens

According to a report by X-explore, the attacker exploited FTX by deploying an attack contract on the chain and sending a small amount of ETH to the contract from FTX.

Each transaction created 1 to 3 subcontracts that performed a MINT or CLAIM XEN function before self-destructing. FTX hot wallet paid for all these transactions.

The report stated that FTX had lost over 81 ETH due to the gas theft while the exploiter had minted more than 100 million XEN tokens. The exploiter is already cashing out as he has exchanged the XEN tokens for 61 ETH using decentralized exchanges such as Uniswap and Dodo.

Since FTX allows free withdrawals, the attacker incurs no costs for the exploit. There is also no limit on transfer gas, meaning the attack could continue for days.

XEN faces a Sybil attack

X-explore also revealed that XEN crypto faced one severe Sybil attack.

According to the report, 67,685 Sybil attack addresses (80%) interacted with the platform on October 12. Since the token’s launch, 335,000 Sybil addresses accounted for 45% of the total participating addresses.

Binance Academy defined a Sybil attack as “a type of security threat to an online system where an individual tries to take over the network by creating multiple accounts, nodes or computers.”

See also  Rep. Davidson will introduce legislation to fire SEC chief Gensler for crypto overreach

XEN is still gobbling up petrol taxes

Despite the fact that an exploiter can mint millions of tokens without paying gas fees, XEN crypto remains the best Ethereum gas guzzler. According to Etherscan data, the project accounted for approximately 15% of gas fees paid in the last 24 hours.

XEN had drawn interest from the wider crypto community thanks to its novel approach to the industry. The significantly increased activity on Ethereum sent gas fees up and made ETH deflationary for several days.

Meanwhile, XEN crypto’s trading volume has increased by 10%, but its value has crashed. The token is trading for $0.00009215 on CoinMarketCap. Data shows it is trading 98% away from its peak of $3.67.

Posted in: Ethereum, Tokens

You may also like...

Leave a Reply

Your email address will not be published. Required fields are marked *