The novel ERC-X token crashed 87% after discovering the double spending problem
Miner, a fictional token built using the experimental ERC-X standard, fell more than 99 percent in the past few hours before paring losses. At the time of publication, each mining token is trading at $11.41, down 87% on the day.
As reported by the developers on February 14th, the $10 million sale was achieved due to a flaw in the smart contract that allowed users to double their tokens by simply transferring mining tokens to themselves. “This problem will be fixed,” the developers wrote. “The contract will be audited before being recycled. Liquidity deposited (~130 ETH) is currently equal to ASTX LP [Liquidity Provider] and used for LP purposes for reclassification.
Yu Xian, co-founder of Singaporean blockchain security firm SlowMist, has this to say about the double-spending problem:
“It's a pity that the contract has low gaps, you can double your balance by transferring money to yourself … There are many levels that are applied without reference, the cost of innovation is a little high, and the losses are not low. .”
Created by mining developers, ERC-X is a novel Ethereum token standard that combines ERC-20, ERC-721 and the newly invented ERC-404 token standards. In response to the incident, the mining group is demanding a 30% return of $120,000 of the compromised funds to the first person who discovered the smart contract bug.
$MINER HACKED. Don't connect!https://t.co/9KTwG3ltSs
The main reason is that if you transfer it to yourself, your balance will double. pic.twitter.com/EnOxoaIaja
— Chaofan Shou (@shoucccc) February 14, 2024
In recent years, while many new standards for Ethereum tokens have been developed, experts have warned about their experimental nature and lack of acceptance by the Ethereum Foundation itself. One of these standards, ERC-404, was invented earlier this year and enables fractional ownership of non-perishable tokens. Pandora, the first token developed using ERC-404, has since surpassed $200 million in market capitalization.
Related: See ERC-404, There's Another Hybrid NFT Standard in Town
