Port3 Network Security Vulnerability: Price Has Nearly Dropped to Zero

This morning, Port3 Network became the target of cyber attackers, and the PORT3 price plummeted by over 99%, nearly dropping to zero. The hack attack occurred due to a critical vulnerability in the network's smart contract.

According to on-chain data, the attacker exploited a validation error in the contract to successfully mint a total of 1 billion PORT3. During this process, the attacker released a large portion of the minted tokens into the market, causing the price to drop by more than 80%. The withdrawal of liquidity led to a reduction in sell pressure after a while; however, there was a sharp collapse in the valuation of PORT3.

It was revealed that the attack stemmed from a boundary condition validation flaw in the cross-chain token solution called CATERC20 used by Port3. Port3 had previously loosened ownership controls to increase decentralization. This situation, when combined with the faulty ownership control, provided the attacker with unauthorized token minting capabilities.

This flaw, which was not detected in audit reports, resulted in a total of 10 billion tokens being minted. The attacker initially minted hundreds of millions of PORT3, earning thousands of Binance Coin (BNB), and then burned approximately 830 million PORT3 tokens to eliminate them.

After the attack, the Port3 team announced a comprehensive plan for rapid intervention to protect users. All affected users will receive new tokens at a 1:1 ratio. The new PORT3 will only be distributed on the BNB Chain, and the liquidity on the Ethereum side will be completely transferred to this network. Additionally, to protect the total supply, 162 million 750 thousand PORT3 will be burned. This step aims to eliminate the excess supply created by the attacker.

The distribution of the new tokens will be carried out using a multi-address transfer method on-chain. The migration process for centralized exchanges is currently in the approval phase. The snapshot was taken immediately after the attack, during which Foresight News and PANews confirmed that the technical details of the attack were clarified and that the team had completely closed this vulnerability in the new contract.

The Port3 team stated that it is now impossible for the attacker to mint tokens through the new contract. How will investor confidence be restored after the price drop? Protection of the supply, the compensation of user losses, and the clear identification of the source of the attack may support short-term confidence. However, the project's market position in the medium and long term will depend on the smooth implementation of the new contract and the team's continued transparent communication.