Harmony’s ONE token fell sharply Wednesday after an apparent exploit created roughly 4 billion new tokens, raising concerns about a major supply shock on the blockchain. The newly minted amount represents more than one-quarter of ONE’s existing supply.
Harmony confirmed the incident and said it has begun working with cryptocurrency exchanges to freeze funds linked to the attack. The project also said its developers are preparing a software patch and evaluating rollback options.
Emergency Response Underway
The incident puts immediate pressure on Harmony to contain the newly created tokens before attackers can move or sell them across exchanges. Freezing funds could limit the attacker’s ability to convert the tokens into other assets while developers investigate the vulnerability.
Harmony has not yet publicly detailed the technical cause of the exploit or confirmed how much of the newly minted ONE remains under attacker control. Therefore, the final scale of the damage remains uncertain.
ONE Price Takes Heavy Hit
ONE fell about 26% during Asian trading hours as traders reacted to the exploit and the potential dilution of the token supply. A sudden creation of billions of additional tokens can significantly undermine market confidence, particularly if those tokens reach liquid markets.
The situation also raises questions about whether a rollback can restore the blockchain to a state before the exploit. Such a move could create additional operational and governance challenges, especially for users whose transactions occur after the attack.
Harmony said it plans to provide further information as its investigation progresses. Until the team confirms the vulnerability, the affected wallets, and the viability of a rollback, investors face substantial uncertainty around ONE’s circulating supply and market value.
