After suffering from a Sybil attack and a minting flaw that allowed the attacker to produce over 100 million tokens, the price of the contentious XEN token has dropped by more than 33%.
Following an FTX gas loophole, the contentious XEN token (1) price plunged by more than 33%. The attacker has created over 100 million XEN tokens through the flaw, and the attack is still going on. The concept first gained attention for enabling users to create tokens by merely paying a gas price. The project's overall goal suggested that it may have been a hoax, although an exploit like this was not mentioned.
On October 10, the hacker used a contract (2) to initiate the attack. They followed you and utilized a hot wallet address on the FTX exchange to send a steady stream of modest sums of ETH to the attack contract. Each transaction creates one to three subcontracts, carrying out a mint to obtain the XEN tokens. The FTX hot wallet address is used to pay for each of these.
Will the preparator get caught?
The assailant may get away with additional minting as long as the violence continues. The fact that there is no restriction on the transfer gas limit is one of the vulnerabilities being exploited. Additionally, there have been reports of a Sybil attack on the XEN token. When one system uses several fictitious identities in a P2P network, each identity executes its transactions, known as a Sybil attack. There are several varieties of these assaults. This includes the XEN-based batch transfer Sybils. There are at least 335,000 Sybil addresses, which accounts for almost 80% of participating addresses.
How does this affect Xen?
Following assaults, the XEN token drops to $0.0001. The future of XEN is gloomy as both the exploit and the Sybil assault harm the network. The token's price has collapsed, and depending on how the upcoming days turn out, it may fall much further. The token is currently valued at $0.00009. It was claimed that the XEN token's value came from the community. However, that no longer seems to be the case. For burning $1.85 million in ETH gas expenses (3) in a single day, it garnered media attention.