Newly launched XEN crypto has fallen 39% in the last 24 hours after users found a way to create over 100 million tokens on FTX without paying gas bills.
Leverage over 100 million tokens mint
according to report From X-explore, the attackers exploited FTX by deploying the attack contract on-chain and sending a small amount of ETH from FTX to the contract.
Each transaction created 1-3 subcontracts that performed MINT or CLAIM XEN functions before self-destructing. FTX Hot Wallet paid for all these transactions.
According to the report, FTX lost over 81 ETH to gas theft, while exploiters issued over 100 million XEN tokens. The exploiter has already cashed in as he swapped his XEN tokens for 61 ETH using decentralized exchanges like Uniswap and Dodo.
Since FTX allows free withdrawals, the attackers are not paying for the exploit. Also, since there is no limit on transfer gas, attacks can last for days.
XEN faces a Sybil attack
X-Explore too clearly What the XEN crypto faced Serious Sybil Attack.
According to the report, 67,685 Sybil attack addresses (80%) interacted with the platform on October 12th.
Binance Academy defined A Sybil attack is “a type of security threat to online systems in which one person creates multiple accounts, nodes, or computers to try and take over a network.”
XEN still pays the gutsy gas fee
XEN crypto is still the top Ethereum gas consumer, even though exploiters can create millions of tokens without paying gas fees.According to Etherscan datathe project accounted for about 15% of gas bills paid in the last 24 hours.
XEN has attracted interest from the wider cryptocurrency community due to its novel approach to the industry. Activity on Ethereum increased significantly, gas prices rose, and Ethereum went into deflation for several days.
Meanwhile, XEN crypto’s trading volume surged by 10%, but its value plummeted. This token is trading at $0.00009215 on CoinMarketCap. The data shows that it is trading 98% away from the peak value of $3.67.
