📰 Vulnerability hits the air — why are hackers minting coins on Ethereum in the name of SingularityNET?
SingularityNET discovered a vulnerability, and hackers directly minted 26 million AGIX and 5.38 million WMTX on Ethereum. This guy has previously also caused trouble for Fetch.ai and NuNet, and this time he’s made such a big move again. SingularityNET is an AI platform, and these coins are its ecosystem tokens. By doing this, the hackers cashed out around $16.77 million. The market impact mainly depends on the regulator’s response and how quickly investors regain confidence in smart-contract security.
Why is this news important?
This is essentially a disgrace for smart-contract developers. As a leading project from the DeFi 1.0 era, SingularityNET has now been exposed for a high-severity vulnerability, meaning any complex AI platform could become an attack target. Hackers were emboldened because Ethereum’s minting functionality has a logic flaw—like the system handed him a master key. This incident will directly intensify security scrutiny across the DeFi space, and regulators may seize the opportunity to push for mandatory standards for smart-contract audits. SingularityNET’s market cap could drop by 10%-20% because users will worry about the safety of their investments.
Market impact
The impact on BTC and ETH is mainly short-term sentiment volatility. ETH is currently at a key support level around $2.5K. If the hacker activity is characterized as a large-scale attack, it could trigger panic selling among ETH users. However, ETH has already fallen 2.49% over the past 24 hours, suggesting the market may have priced in part of the risk. In the long run, this won’t change the fundamentals of AI tokens, but it will accelerate developers adding stricter cross-chain interaction protections into smart contracts. Historically, there was a similar incident in 2018: the Parity wallet vulnerability led to the loss of $500 million worth of ETH. Back then it was a rookie mistake, but this time it’s an experienced hacker, so the nature is completely different.
Trading idea
💡 In the short term, ETH may continue to face pressure and test the $2.3K support level. If ETH breaks below this level, it would mean the market lacks confidence in smart-contract security, dragging down the entire AI sector. But right now, the Fear & Greed Index for ETH is still in the “Extreme Fear” zone, which suggests limited downside room. My view is that if regulators start mandating that DeFi projects deploy across multiple blockchains, then this view becomes invalid.
This article has no sponsorship from any project. The author does not hold any of the assets mentioned
⚠️ Not investment advice. Predictions are for reference only.
SingularityNET discovered a vulnerability, and hackers directly minted 26 million AGIX and 5.38 million WMTX on Ethereum. This guy has previously also caused trouble for Fetch.ai and NuNet, and this time he’s made such a big move again. SingularityNET is an AI platform, and these coins are its ecosystem tokens. By doing this, the hackers cashed out around $16.77 million. The market impact mainly depends on the regulator’s response and how quickly investors regain confidence in smart-contract security.
Why is this news important?
This is essentially a disgrace for smart-contract developers. As a leading project from the DeFi 1.0 era, SingularityNET has now been exposed for a high-severity vulnerability, meaning any complex AI platform could become an attack target. Hackers were emboldened because Ethereum’s minting functionality has a logic flaw—like the system handed him a master key. This incident will directly intensify security scrutiny across the DeFi space, and regulators may seize the opportunity to push for mandatory standards for smart-contract audits. SingularityNET’s market cap could drop by 10%-20% because users will worry about the safety of their investments.
Market impact
The impact on BTC and ETH is mainly short-term sentiment volatility. ETH is currently at a key support level around $2.5K. If the hacker activity is characterized as a large-scale attack, it could trigger panic selling among ETH users. However, ETH has already fallen 2.49% over the past 24 hours, suggesting the market may have priced in part of the risk. In the long run, this won’t change the fundamentals of AI tokens, but it will accelerate developers adding stricter cross-chain interaction protections into smart contracts. Historically, there was a similar incident in 2018: the Parity wallet vulnerability led to the loss of $500 million worth of ETH. Back then it was a rookie mistake, but this time it’s an experienced hacker, so the nature is completely different.
Trading idea
💡 In the short term, ETH may continue to face pressure and test the $2.3K support level. If ETH breaks below this level, it would mean the market lacks confidence in smart-contract security, dragging down the entire AI sector. But right now, the Fear & Greed Index for ETH is still in the “Extreme Fear” zone, which suggests limited downside room. My view is that if regulators start mandating that DeFi projects deploy across multiple blockchains, then this view becomes invalid.
This article has no sponsorship from any project. The author does not hold any of the assets mentioned
⚠️ Not investment advice. Predictions are for reference only.
