Quick Takeaways
- Humanity Protocol’s native token, H, plummeted 88% after a major security breach involving wallet hacks, stealing over $30 million.
- Attackers drained multiple wallets by compromising private keys, prompting the project to warn users against using bridges and liquidity pools.
- The hack sparked suspicion and criticism, with some experts suggesting it might have been staged for market exits.
- Despite the exploit, the hacker still holds assets worth nearly $14 million, although token liquidity has been nearly wiped out.
Worldcoin Rival Humanity Protocol’s Token Crashes 88% Amid $30M Wallet Drain
Security Breach Sparks Fears
Humanity Protocol’s native token, H, plummeted nearly 88% on June 9. The price fell from about $0.78 to nearly $0.10 in just a few hours. The crash followed reports of a major security incident. On-chain investigators revealed that over 17 wallets holding H tokens were drained. Attackers stole private keys linked to the project. More than $30 million worth of funds disappeared from affected wallets. Humanity Protocol confirmed the breach on social media. They announced that a member’s private keys had been compromised. The team urged users to avoid using bridges and liquidity pools. They said they are working with security experts and exchanges. The goal remains to assess the full extent of the attack. Critics, however, questioned the project’s handling. Investigator ZachXBT accused Humanity Protocol of promoting the token while hiding underlying issues. He also suggested the breach might have been staged to allow key insiders to exit their positions. The incident raises worries about the project’s security and trustworthiness.
Market Impact and Ongoing Theft
Meanwhile, the hacker continued to mint H tokens after the event. Blockchain analytics show the attacker created two 100 million H token pools on BNB Smart Chain. They sold some tokens for about $30.83 million in ETH and nearly $925,000 in BNB. Despite the sales, the hacker’s holdings remain large—about 111 million H tokens—worth close to $14 million today. Yet, liquidity for the token has mostly dried up. Industry observers doubt the token will recover quickly. The incident highlights risks in new blockchain projects, especially those promising identity verification. Humanity Protocol is one of several competitors to Worldcoin. Its focus is on biometric verification that protects user privacy. Still, security issues like this could affect future trust and adoption. As questions mount about its future, investors and users wait for the project’s next move.
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