Griffin AI (GAIN) Down 90 Percent After Listing

The Griffin AI (GAIN) token, which began trading on the Binance platform yesterday, suffered an unexpected drop shortly after its debut. The GAIN token plummeted 87% to $0.027 after an attacker minted 5 billion additional tokens.

On-chain data revealed that the attacker injected excess supply into the market, destabilizing the supply, and then sold a large portion of these tokens on PancakeSwap, paving the way for the depreciation. Blockchain security firm, GoPlus Security, shared details of the attack and stated that it was carried out using a fake LayerZero peer setup. This is reminiscent of a vulnerability previously seen in the Yala project.

The attacker was found to have made a profit of approximately 2,955 Binance Coins (BNB) or approximately $3 million by selling 147.5 million GAIN tokens, then converting the funds to Ethereum (ETH) and transferring them via Tornado Cash. GAIN was announced on September 24th with a user-exclusive airdrop event on Binance Alpha, making it the first altcoin to be listed on Binance. However, this large-scale listing failed to prevent a sudden price drop.

Griffin AI platform allows users to develop artificial intelligence agents without coding knowledge. The GAIN token has important functions within the ecosystem, such as AI service credits, transaction execution, staking and node security. However, this lack of security has caused investors to suffer serious losses and shaken confidence in the project. Although the daily trading volume increased by 126% to $96 million, it was noted that most of this increase was due to panic selling on decentralized exchanges.

Investors began to question both the vulnerabilities and the future of the Griffin AI project following these developments. In the coming periods, they will need to carefully review their trading strategies to ensure the security of the project and reduce potential losses.