$2.6 million was drained, and Initia halted its entire chain.
That’s right—both the Layer 1 and all rollups were paused. According to security researchers, the attacker bypassed the normal process and minted tokens directly, then transferred more than $2.6 million in assets to Ethereum.
This is the kind of attack I hate most: instead of fighting you with code, they simply change the supply. The token is still the same token, but the liquidity has already been drained from the pool, leaving everyone else staring blankly at the chart. In the moment, the project really had only one option: halt the chain. Pausing it limits the damage, but it’s not a solution. How long it stays down and when it comes back online depend on what the team does next.
My take: I wouldn’t touch anything on this chain in the short term. While the rollups are down, you can’t do anything even if you want to. That said, the fact that they were willing to shut down the entire chain immediately at least shows the team didn’t go silent. That’s a lot better than projects that issue a statement afterward and shift the blame.
As for $INIT, I won’t make a call for the market. I just know that once a supply-minting vulnerability is confirmed, repairing the narrative is ten times harder than fixing the code.
So here’s the question: When a chain that’s been hacked is halted, do you buy the dip—or blacklist it and never touch it again? Share your reasons in the comments.
#CryptoSecurity #OnChainVulnerability
That’s right—both the Layer 1 and all rollups were paused. According to security researchers, the attacker bypassed the normal process and minted tokens directly, then transferred more than $2.6 million in assets to Ethereum.
This is the kind of attack I hate most: instead of fighting you with code, they simply change the supply. The token is still the same token, but the liquidity has already been drained from the pool, leaving everyone else staring blankly at the chart. In the moment, the project really had only one option: halt the chain. Pausing it limits the damage, but it’s not a solution. How long it stays down and when it comes back online depend on what the team does next.
My take: I wouldn’t touch anything on this chain in the short term. While the rollups are down, you can’t do anything even if you want to. That said, the fact that they were willing to shut down the entire chain immediately at least shows the team didn’t go silent. That’s a lot better than projects that issue a statement afterward and shift the blame.
As for $INIT, I won’t make a call for the market. I just know that once a supply-minting vulnerability is confirmed, repairing the narrative is ten times harder than fixing the code.
So here’s the question: When a chain that’s been hacked is halted, do you buy the dip—or blacklist it and never touch it again? Share your reasons in the comments.
#CryptoSecurity #OnChainVulnerability