In a startling turn of events, a new cryptocurrency token known as Miner, which operates on an experimental ERC-X standard, suffered a catastrophic value drop, nosediving over 99% in just a matter of hours. The digital asset’s price stabilized to $11.41, indicating an 87% decline within the same day. This sharp decline was caused by a glitch in the token’s smart contract that inadvertently permitted holders to duplicate their Miner tokens simply by transferring the tokens to themselves. This glitch was exploited during a sale event which raised $10 million.
Immediate Response to the Glitch
The Miner development team has taken swift action to address the glitch, vowing to revamp the contract following a thorough audit and to utilize the preserved 130 Ethereum in liquidity for redistribution purposes. Yu Xian of SlowMist, a blockchain security firm, highlighted the severity of the glitch, critiquing the adoption of numerous standards without proper vetting and pointing out the high cost of such innovation risks.
Understanding ERC-X and the Novel ERC-404 Standard
The ERC-X standard, crafted by the creators of Miner, merges elements of previously existing Ethereum token standards and the novel ERC-404 standard, which allows for fractional ownership of non-fungible assets. Despite the promising start for ERC-404 with the Pandora token amassing a $200 million market cap, experts caution against the unapproved and experimental nature of these new standards. The unfolding scenario within the ERC-404 domain is poised to draw attention, potentially paralleling recent Bitcoin Ordinals developments.
Following the smart contract debacle, the Miner team reached out to the individual who identified the glitch, requesting the return of 30% of the erroneously obtained funds, which equated to $120,000.
The crypto community now watches closely as the Miner team works to rectify the situation and as the broader implications for new Ethereum standards like ERC-404 become clearer.
