Harmony Slammed as 4 Billion ONE Tokens Mysteriously Minted

Harmony's ONE token price plummeted by over 26% in 24 hours as trading volume surged above $36 million on August 12, following a suspected security incident on its Layer 1 network. The protocol reported that it was working with cryptocurrency exchanges to freeze funds while developing a patch and evaluating rollback options.

According to analyst Juiceberg, an unauthorized 4 billion ONE were minted through empty network blocks, with approximately 2.8 billion reaching exchanges. Harmony has not confirmed the amount publicly.

This is not the first incident involving unintended token creation for Harmony. In December 2023, a staking logic flaw caused 146.28 million ONE to be minted across 74 delegator addresses, prompting an emergency hard fork.