Token

Bittensor

Wednesday

Security

The Bittensor team detected suspicious activity on Wednesday morning, prompting an immediate suspension of all network operations. Blockchain explorers confirm that no new blocks have been generated for over six hours, effectively putting the network in “safe mode” and blocking all transactions. 
This swift action was taken as a precautionary measure to prevent potential further damage. The market responded quickly to the news, with the <a href="https://coingape.com/blog/why-is-bittensor-tao-price-falling/">Bittensor (TAO) price</a> experiencing a significant 12% drop, reflecting investor concerns about the network’s security. 
<h2 id="network-security-breach-investigation-and-community-response">Network Security Breach, Investigation and Community Response</h2> 
While official details remain limited, early reports suggest the attack may have involved unauthorized access to user wallets. Security researcher ZachXBT has proposed that a leak of private keys, which function as passwords to <a href="https://coingape.com/klever-io-best-multi-chain-wallet-of-2024/" target="_blank" rel="noopener">crypto wallets</a>, might be the root cause. Bittensor co-founder Ala Shaabana confirmed the network halt and assured users that the situation is under control, stating that the attack has been contained. 
The Bittensor community on Discord is actively discussing the situation, with a moderator named “Watchmaker” confirming that the network will remain in “safe mode” for at least 24 hours while the investigation continues. As an additional precaution, regular software updates have been temporarily suspended until the network is fully restored and secured. 
Also Read: <a href="https://coingape.com/mantra-chain-announces-500m-real-estate-tokenization-deal-with-dubais-mag-group/" target="_blank" rel="noopener">Mantra Chain Announces $500M Real Estate Tokenization Deal With Dubai’s MAG Group</a> 
<h2 id="market-impact-and-token-performance">Market Impact and Token Performance</h2> 
The security breach has had a significant impact on the Bittensor ecosystem, particularly its native token, TAO. In the 24 hours following the incident, TAO’s price fell sharply by more than 12%, dropping from $281.67 to $237.32. This however has continued the 16.50% price decline over the past week. Amidst the chaos the <a rel="nofollow" href="https://coinalyze.net/bittensor/open-interest/" target="_blank">open interest</a> of TAO has surged by 16.38% and a current valuation of $36.4 million. 
<img decoding="async" class="aligncenter wp-image-205686" src="https://coingape.com/wp-content/uploads/2024/07/Screenshot-758.png" alt="" width="727" height="408" srcset="https://coingape.com/wp-content/uploads/2024/07/Screenshot-758.png 1366w, https://coingape.com/wp-content/uploads/2024/07/Screenshot-758-300x169.png 300w, https://coingape.com/wp-content/uploads/2024/07/Screenshot-758-1224x688.png 1224w, https://coingape.com/wp-content/uploads/2024/07/Screenshot-758-768x432.png 768w, https://coingape.com/wp-content/uploads/2024/07/Screenshot-758-678x381.png 678w, https://coingape.com/wp-content/uploads/2024/07/Screenshot-758-150x84.png 150w" sizes="(max-width: 727px) 100vw, 727px"> 
At the time of reporting, TAO’s price stands at $237.45, with a 24-hour trading volume of $84.8 Million. The circulating supply of TAO is currently 7 Million tokens. These market movements reflect the uncertainty surrounding the network’s security and the potential long-term implications of the breach. As the investigation progresses and more information becomes available, it’s likely that the market will continue to react to developments in this ongoing situation. 
Also Read: <a href="https://coingape.com/tea-memecoin-shows-record-presale-generating-3-4m-in-just-10-minutes/" target="_blank" rel="noopener">$TEA Memecoin Shows Record Presale, Generating $3.4M in Just 10 Minutes</a> 
The post <a href="https://coingape.com/bittensor-down-security-breach-triggers-network-shutdown-tao-token-in-freefall/">Bittensor Down: Security Breach Triggers Network Shutdown, TAO Token In Freefall</a> appeared first on <a href="https://coingape.com">CoinGape</a>.

Bittensor Down: Security Breach Triggers Network Shutdown, TAO Token In Freefall

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