Bitcoin and cryptocurrency prices, on the brink of collapse in recent days due to the escalating situation in Ukraine, suddenly plummeted following news of a serious attack on the platform. – form of non-fungible tokens (NFT) OpenSea.
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Bitcoin price crashed below $40,000 per bitcoin, down more than 5% in the past 24 hours, while ethereum and rivals BNB, solana, cardano are down 6% at 8%, even as the crypto market braces for $100 trillion. earthquake.
The latest crypto price crash, which has wiped nearly $300 billion from the combined crypto market in the past few days, was sparked by a series of viral tweets from panicked NFT traders, leading OpenSea to say he was investigating “rumors of an exploit”.
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“As far as we can tell, this is a phishing attack,” said Devin Finzer, co-founder and CEO of OpenSea. job on Twitter late last night. “We do not believe it is connected to the OpenSea website. It appears that 32 users have so far signed a malicious payload from an attacker, and some of their NFTs have been stolen.”
The hacker, whose Ethereum address is visible hereappears to have stolen approximately $3 million in NFTs, including from the popular Bored Ape Yacht Club collection which counts Paris Hilton and Jimmy Fallon as owners.
Blockchain-tracking website Etherscan added a “warning” to the hacker’s Ethereum address, warning that “there are reports that this address has been used in an OpenSea phishing scam.” Phishing scams attempt to trick users into clicking on links or downloading software that attackers then use to gain access to victim accounts or data.
“I don’t see how OpenSea survives this mess,” said David Gokhshtein, owner of Bored Ape Yacht Club NFT and founder of blockchain and lifestyle media company Gokhshtein Media, job to Twitter.
OpenSea, which counts venture capital giant Andreessen Horowitz and actor Ashton Kutcher as backers, is one of the largest NFT trading platforms and was recently valued at $13 billion after sales volume of NFT soared to $25 billion in 2021, according to data from DappRadar.
NFTs are blockchain-based digital tokens that can be used as certificates of authenticity or proof of ownership. The NFT market relies heavily on the Ethereum blockchain despite high fees and network congestion causing problems for users.
The huge growth of NFTs, which have been embraced by the sports, music and art worlds, has helped the price of ethereum overtake bitcoin over the past year, while rivals Ethereum BNB, Solana, Cardano also surged as investors bet they could gain market share from historic Ethereum.
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Since the bitcoin and crypto market peaked in November last year, the combined value of cryptocurrencies has plummeted by nearly half.
The crash in bitcoin’s price, which fell from nearly $70,000 per bitcoin to a low of $32,000 last month, came amid a steep stock market decline that was led by tech companies which had soared during the coronavirus pandemic.
The US Federal Reserve’s plans to raise interest rates and potentially shrink its gaping balance sheet in a bid to rein in runaway inflation have spooked investors around the world.