Miner, a revolutionary token minted using the innovative ERC-X standard, has experienced a drastic crash of over 99% within the past few hours before gradually recovering some of its losses. As of the time of this publication, each Miner token is trading at $11.41, marking an 87% decrease for the day.
According to developers, the $10 million sell-off was triggered by a glitch in the smart contract, which allowed users to double their tokens simply by transferring Miner tokens to themselves. Assuring the community, the developers stated that this issue will be promptly resolved. They also mentioned that the contract will undergo a thorough audit before being redeployed. The saved liquidity, approximately 130 ETH, will be utilized for liquidity provider purposes during the redeployment.
Yu Xian, co-founder of SlowMist, a blockchain security firm based in Singapore, commented on the double-spending glitch, stating:
“ERC-X, an Ethereum token standard developed by the Miner team, is an incredible amalgamation of features from the renowned ERC-20 and ERC-721 standards, along with the newly introduced ERC-404 token standard.”
In response to the glitch, the Miner team has requested the individual who initially discovered the flaw in the smart contract to return 30% of the affected funds, which amounts to $120,000.
While numerous new Ethereum token standards have been introduced in recent years, experts have cautioned against their experimental nature and the fact that they lack approval from the Ethereum Foundation itself. One such standard, ERC-404, was introduced earlier this year and enables fractional ownership of nonfungible tokens. Pandora, the inaugural token minted using ERC-404, has already achieved a market capitalization exceeding $200 million.
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Keep an eye out for another hybrid NFT standard as it challenges ERC-404’s dominance.