NetMind Team Dispels FUD, Denies Compromise in Miner Hack

NetMind, a blockchain artificial intelligence (AI) platform, has denied rumors that it was hacked on March 15. The company clarified in a post that the exploit was limited to an individual miner and did not impact the overall platform. Speculation arose after NetMind’s token, NMT, experienced a significant drop in value due to a large sale. NetMind AI operates as a cloud computing platform that allows users of graphics processing units to process data in exchange for tokens. These tokens, known as NMT, are built on the blockchain network called “NetMind Chain,” and there is also a version of the token on BNB Smart Chain.

At around 1:15 pm UTC, the price of NMT plummeted from $11.34 to $2.77, marking a decline of nearly 76%. Users on the X platform began speculating that NetMind may have fallen victim to a mint exploit, enabling an attacker to create an unlimited number of tokens and sell them, ultimately devaluing the token. At 4:19 pm UTC, the NetMind team reassured users on X that the rumors were false. They confirmed that the exploit or hack was related to one of the platform’s early miners who sold 440,000 NMT tokens, causing the initial price drop. The team made it clear that the platform itself had not been compromised.

Following this clarification by the NetMind team, the markets seemed to calm down. The price of NMT has since rebounded and now stands at $9.70, which is a 250% increase from the bottom. This recovery means that NMT is currently only down 14% from its pre-incident price. A user on X claimed to have identified the address of the hacker responsible for the price decline. The user shared the wallet address that allegedly bridged multiple batches of tokens from the NetMind chain to BNB Smart Chain and sold them on PancakeSwap. It is unclear whether these sales occurred during the exact time of the price drop.

NetMind has denied being hacked and clarified that the exploit was limited to an individual miner. The platform’s token, NMT, experienced a significant drop in value due to a large sale, prompting speculation of a widespread exploit. The NetMind team’s reassurance that the platform itself was not compromised has helped restore market confidence, resulting in a significant recovery in the token’s price.