Market Meditations | June 3, 2022
There’s never a time to relax your guard in crypto. Hacks and exploits continue to roll in, no matter what the market looks like. The latest protocol to reflect this very real possibility is Mirror.
- An attack was identified yesterday that could be responsible for more than $2 million in losses so far.. In a plot twist easily confused with an Austin Powers sequel, the bug had to be fixed by 4AM EST today or all of the protocol’s tokenised assets were to become at risk.
- Mirror protocol is a platform allowing users to engage tech stocks using synthetic versions of these targeted assets. In addition to stocks, synthetic versions of other cryptocurrencies, like Bitcoin, are available.
- A community member, pseudonymously known as FatMan, told The Block his estimation of loss had already surpassed $2 million, but hesitated to give a total of the damage without additional confirmation.
- Because the remaining pools are all tied to the stock market which did not open until earlier this morning due to the holiday weekend in the United States, developers raced the clock to correct this vulnerability before further damage was dealt.
- The error was due to a faulty, outdated oracle, which returned inaccurate pricing data for the underlying versions of synthetic assets on Mirror.
There’s never a time to relax your guard in any industry. If money’s involved, bad actors will continue to find ways to filch it. Do your research before investing. This wasn’t the first time Mirror was attacked.
Get acquainted with best practices when it comes to crypto security here.