Blockchain security firm Supremacy Inc. warned ParaSwap earlier Tuesday of a potential exploit. “The private key of your distributor address may have been compromised,” the team wrote. Following the spread of this news, the value of ParaSwap’s altcoin project plummeted. Here are the details…
Hacking danger in ParaSwap
Blockchain security firm Supremacy Inc. reported that ParaSwap may have been hacked. ParaSwap confirmed it was investigating the incident. Supermacy Inc. first warned ParaSwap about the problem in a thread of tweets on Tuesday. “The private key of your distributor address may have been compromised,” he said. He added that “funds from multiple chains have been stolen.” ParaSwap quickly responded to posts, confirming that it was investigating the incident.
Supremacy Inc. has added an Etherscan link to ParaSwap’s distributor contract address. The wallet’s transaction history revealed that someone with access to its private key made several transfers between Ethereum, BNB Chain and Fantom earlier this morning. However, it shows that the person in question only withdraws a few hundred dollars in each transaction. The ParaSwap team did not confirm that it did the transactions in its response. But he didn’t completely rule out the possibility of any security vulnerabilities.
Altcoin price depreciates
Several members of the crypto community weighed in on Supremacy Inc.’s post shortly after. Cobie, one of the servers of UpOnly, stated that ParaSwap has excluded many loyal users. He referred to the token airdrop with a solid distribution model. “Still not as bad PR as the airdrop,” he said of the vulnerability. PSP suffered a decline shortly after the airdrop. It did not recover again.
Still not as bad PR as the airdrop
— Cobie (@cobie) October 11, 2022
According to data from CoinGecko, it is about 98.8 percent behind its all-time high today. It also lost value in the 24-hour period due to hacking rumors. The cryptocurrency dropped to $0.0237 while changing hands at $0.0243. The coin recorded its all-time high on November 15, 2021. At the time, the price tag was $2.10.
Statement from the project
In a tweet following the above, ParaSwap said it found no signs of exploitation. “No vulnerabilities were found,” the project said, “and we will follow up on analysis and disclosures.”
✅ No vulnerability found! Please check the facts & Don't Trust, Verify!
We’ll follow up with analysis & an explanation of what’s a deployer address and how we made sure they have no power at all! https://t.co/uQKVncMZof
— ParaSwap (@paraswap) October 11, 2022
Meanwhile, ParaSwap has recently come to the fore with an innovation in the network. According to the latest developments, the ParaSwap community will submit proposals on users’ local token emissions and redistribution of transaction fees. Thus, it will change the way users earn incoming rewards. The proposal from the ParaSwap DAO governance forum calls for a new reward system called “social trust”. Thus, users earn rewards by performing actions deemed positive for the protocol.
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