TL;DR
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We simply heard of one thing fairly horrifying.
It’s known as an ‘infinite mint assault’.
Right here’s the way it works:
You understand how some crypto initiatives have a restricted provide?
Take BTC for instance – solely 21M BTC ever have been, and ever will probably be, created.
Which is tremendous necessary for the challenge’s tokenomics.
(I.e. The way in which an investor can gauge worth by analyzing provide and demand).
Look, we’re not builders, removed from it, however what we all know is that every time tokens are minted, someplace in a challenge’s good contract code lies the particular quantity for the full provide.
However what occurs if a hacker is ready to change that quantity? What about in the event that they turned that quantity from 10M to 10B (for instance)?
Then, when minting new tokens, they will mint an infinite quantity.
At first it could be onerous to inform. If the challenge has vital liquidity, likelihood is the hacker will have the ability to promote among the tokens with out being seen.
…till they’re caught.
Which is able to then doubtless tank the worth of the prevailing tokens and wreck the celebration for the entire good actors who invested as a result of they believed within the challenge.
That is precisely what occurred some time again throughout the Paid Network hack.
The way in which for firms to beat the infinite mint hack is thru frequent good contract audits – and for traders, it’s at all times greatest to seek out out when the latest good contract audit was accomplished earlier than investing closely in a challenge.
Keep protected on the market!