Another hack has taken place in the crypto market; this time, metaverse platform MetaPoint is the victim. The project was exploited for nearly $1 million.
Metaverse platform MetaPoint was hacked for nearly $1 million on April 12, with the attacker stealing 2,515 BNB. The hacker has also funneled the funds into Tornado Cash, which will complicate the process of reimbursing victims.
MetaPoint has not made an official statement yet on the incident and whether there is a reimbursement plan in the cards.
The Hack Explained
The attacker exploited one of the smart contracts on the platform. If the user deposits, the transaction creates a new contract and deposits the assets into that contract instead.
One analyst stated, “The problem is that this contract has a function called approve that gives the caller of the function access to the $META tokens without any restriction.”
He was also able to rescue 36,800 POT tokens worth $63,000.
The MetaPoint team announced on Telegram that it had been hacked and suspended all operations. They have pinpointed the vulnerabilities and currently working on fixes. It has been less than a day since the hack, and the theft could have been much larger.
The POT token is currently trading at $1.74, down by roughly 77% over the last 24 hours. At its peak, the token was priced at $35.71.
What Is MetaPoint?
MetaPoint is a metaverse where players can engage in many of the typical activities expected in these virtual worlds. These include engaging in social activities, participating in events, playing games, and building businesses.
It also claimed to have an innovative trading model and a new AMM mechanism. The idea is that players can engage in financial mechanisms while simultaneously having fun being involved in a metaverse.
Metaverse Interest Tanks
Once the biggest hype magnet of the tech industry, interest from major corporations in the space has tanked over the past few months. Among the notable incidents is the fact that Walmart shut down its metaverse experience on Roblox. Then there’s Meta, which has had to scale down its ambitions.
Crypto projects themselves are struggling, as Decentraland has taken a hit, as has The Sandbox. Still, some countries see a strong potential here, with Japan, in particular, showing a lot of gumption.
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