Miner, an innovative token created through the experimental ERC-X standard, experienced a staggering decline of over 99% in the past few hours before managing to recover some of its losses. As of now, each Miner token is trading at $11.41, marking an 87% drop for the day.
According to developers, the $10 million sell-off was a result of a glitch in the smart contract, which allowed users to double their tokens by simply transferring Miner tokens to themselves. The developers assured that they will fix this issue and conduct a thorough audit of the contract before redeploying it. They also mentioned that the saved liquidity, amounting to approximately 130 ETH, will be used 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. He stated:
“ERC-X is an Ethereum token standard developed by Miner developers, combining elements from ERC-20, ERC-721, and the newly introduced ERC-404 token standards.”
In response to the glitch, the Miner team has requested the individual who first discovered it to return 30% of the affected funds, totaling $120,000.
While numerous Ethereum token standards have been introduced in recent years, experts have cautioned about their experimental nature and the fact that they lack approval from the Ethereum Foundation itself. One of these standards, ERC-404, was invented earlier this year and enables fractional ownership of nonfungible tokens. The first token minted using ERC-404, called Pandora, has already achieved a market capitalization exceeding $200 million.
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