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Metis, an Ethereum layer-2 platform, warns customers to not purchase METIS on the BNB Blockchain days after the PolyNetwork was hacked and $5.5 million of belongings stolen. In a tweet shared on July 5, Metis stated they took a snapshot of all addresses holding METIS on the BNB Chain on the time of the PolyNetwork hack and when exploiters started promoting stolen METIS.
Due to this, the layer-2 protocol stated all addresses that search to purchase METIS from the BNB Chain wouldn’t be acknowledged. On the similar time, they’re asking neighborhood members to drag liquidity from PancakeSwap, a well-liked decentralized alternate on the BNB Chain.
Already, Metis stated all METIS minted through the PolyNetwork bridge had been locked on BNB Chain by the PolyNetwork workforce and had restricted liquidity.
The PolyNetwork Hack And Affect On Metis
On July 2, the PolyNetwork, a cross-chain protocol that permits the switch of tokens between varied blockchains, together with Ethereum, BNB Chain, Avalanche, and others, was hacked, and $5.5 million value of belongings stolen. The hacker exploited a protocol weak point to create billions of {dollars} value of METIS, BNB, and BUSD tokens on the Metis platform.
Via this flaw, the hacker minted tokens out of skinny air and transferred them to exterior addresses. A number of hours after the hack was flagged, Binance CEO, Changpeng Zhao, stated they weren’t accepting deposits from the PolyNetwork.
The hacker tried to mint further tokens from different blockchains apart from Metis. Nonetheless, the hacker couldn’t proceed with their actions due to inadequate liquidity. At one level, observers notice, the hacker held $42 billion value of tokens however couldn’t pull out all belongings due to skinny liquidity in some platforms. 57 belongings on ten platforms, together with Ethereum, BNB Chain, and Metis, had been affected.
Sluggish Response?
Nonetheless, analysts blame PolyNetwork for shedding belongings, claiming that their “sluggish” response price token holders hundreds of thousands of {dollars}. Particularly, a workforce of web3 safety specialists claims PolyNetwork waited seven hours earlier than pausing the protocol.
On the similar time, they famous that the hack wasn’t “complicated” since PolyNetwork’s logic wasn’t exploited. As a substitute, their evaluation reveals that the protocol used a “easy 3 of 4 multisig association over two years.”
As a mitigation measure, the PolyNetwork workforce has suspended the bridge. It is usually providing $10 million for anybody resulting in the arrest of the hacker. In a tweet, they urged the neighborhood to “stay calm and belief” them as they’re “dedicated to safeguarding their belongings.”
When writing, METIS, the native token of the Metis platform, stays below stress and edging decrease, monitoring towards January 2023 lows. At spot charges, METIS is down 60% from April 2023 highs.
Function picture from Canva, chart from TradingView
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