Blockchain tokenization platform Holograph experienced a severe blow as its native token, HLG, plummeted by as much as 79.4% following a significant security breach.
Blockchain tokenization platform Holograph experienced a severe blow as its native token, HLG, plummeted by as much as 79.4% following a significant security breach. A malicious actor exploited the platform's operator contract, minting 1 billion HLG tokens worth $14.4 million.
Holograph confirmed the hack on their X account, revealing that they have since patched the initial exploit. The platform is now working closely with cryptocurrency exchange partners to freeze the accounts associated with the malicious actor. In addition to internal investigations, Holograph is contacting law enforcement to assist in tracking down the perpetrator.
The exploit began on June 13 at 9:47 am UTC, according to Etherscan data. The hacker minted the 1 billion HLG tokens across nine transactions, taking advantage of a vulnerability in the smart contract. Seven of these transactions involved 100 million HLG tokens each. The impact on the token's value was immediate; within just 10 minutes, the price started to decline sharply.
Within nine hours, HLG's price dropped from $0.014 to a local low of $0.0029, marking a steep 79.4% decline. During this time, the market cap of HLG fell dramatically from nearly $22 million to $4.8 million. The token has since recovered slightly to $0.008. Approximately four hours after the initial exploit, they began converting the minted HLG into Tether (USDT), a stablecoin, further complicating recovery efforts. At the current prices, the 1 billion HLG tokens are valued at $7.4 million.
Holograph operates within the Omnichain ecosystem, providing a platform that enables tokens to move seamlessly between blockchains while maintaining the same contract address. This functionality allows asset issuers to index cross-chain data efficiently. The platform has attracted venture capital funding from notable firms such as Animoca Brands and Mechanism Capital.
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