Hedera’s Mainnet Shutdown Sparks Panic: HBAR Drops 18%

Hedera holders are running for their life in the desert from mainnet explosion.
  • Hedera’s recent security breach caused panic on Crypto Twitter.
  • Hedera blockchain wallets are showing zero balance for investors.
  • HBAR dropped 5.5% in the last 24 hours and 18% since last week.

The emerging open-source public blockchain Hedera (HBAR) officially halted its mainnet after a hacker managed to hack the smart contract and drain numerous wallets. According to the latest statement on Hedera’s official Twitter, the fraudster exploited the smart contract service of Hedera’s mainnet.

Further, the hackers took the wallets in liquidity pools on DEXs as the primary target. Millions of Hedera (HBAR) tokens were siphoned and bridged via the Hashport Network. However, the bridge operators managed to spot suspicious transactions quickly and disabled them shortly after.

$570,000 Stolen by Hackers

The open-source ledger representatives also mentioned that the mainnet had been turned off “to prevent the attacker from being able to steal more tokens.” That way, the hacker cannot connect to the mainnet, but the issue is far from resolved. This has caused the blockchain’s native token HBAR to plunge 18% in the last seven days. At press time, Hedera (HBAR) trades at $0.058, according to CoinGecko.

According to the CertiK crypto analytics protocol, the hackers got away with $57,000 in Hedera (HBAR) tokens. The developer team behind Hedera is actively looking for a solution to the security breach. According to the rescue plan, “Hedera Council members will sign transactions to approve the deployment of updated code on mainnet to remove this vulnerability”.

On The Flipside

  • Crypto investors on Twitter are outraged about the move to shut down the entire mainnet of Hedera, as it doesn’t comply with the proclaimed decentralization idea.
  • Many crypto traders are dismayed to see zero balances, including cold wallets.
  • Currently, crypto holders on Hedera can’t be sure if the balance is not visible or simply drained.

Why You Should Care

Hedera is an emerging open-source ledger that struck deals with retail brands like LG Electronics and expanded blockchain use cases through numerous enterprise applications.

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This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Tadas Klimasevskis

Tadas Klimasevskis is an author & reporter, focusing on the latest tendencies of the crypto galaxy. Tadas spends his time digging deeper into specific areas like coins such as Shiba Inu (SHIB) & Dogecoin (DOGE), music NFTs, sports NFTs, digital art, and Pop culture in Web 3.0. Tadas strongly believes in crypto as disruptive innovation and keeps an eye out for new crypto hubs being developed around the globe. His vast experience in social media lets him quickly spot what’s going on in the mercurial world of crypto and deliver stories with unique spins. He has been active in blockchain and cryptocurrencies since 2019.