NetMind, a blockchain artificial intelligence (AI) platform, has publicly denied rumors of a platform-wide hack, attributing a recent token price drop to an incident involving an individual miner.
The platform, which allows GPU owners to process data for tokens, faced speculation of a potential exploit after its token, NMT, saw a significant decrease in value. This led to concerns about a possible mint exploit, where an attacker could generate an unlimited number of tokens.
The speculation began after a large sale of NMT tokens led to a dramatic fall in price, prompting users on social media platform X to theorize about a platform compromise. However, NetMind responded with an X post, reassuring stakeholders that the platform was secure and the incident did not reflect a systemic issue.
The company identified that the exploit was linked to one of the network’s early miners, who had mined 440,000 NMT tokens, and confirmed that no hack or malfunction had compromised the platform itself.
Market response and recovery efforts
Following NetMind’s clarification, the token’s price experienced a recovery. At the time of publication, NMT’s value had increased to $8.54, a significant rebound from its lowest point during the incident ($11.34 to $2.77).
This recovery left the token’s value down by only 14% from its pre-incident price, suggesting that the market had absorbed the shock of the initial sell-off and the subsequent rumors.
Blockchain data from BNB Smart Chain indicated that this address had transferred multiple batches of NMT tokens to BNB Smart Chain and sold them on PancakeSwap. While these transactions were identified, it remains uncertain whether they were directly responsible for the initial price decline.
At the time of writing, NMT is trading at $8.85, and down by 26.21% in the last 24 hours, according to Coinmarketcap.
