The decentralized platform Bancor Network is now operational again, and it has been able to reach trading volumes that are of about $2.5 million in just under 24hrs, this is according to the CoinMarketCap. For more than a day the network was put on lockdown, this is after a compromised wallet was taking advantage of a smart contract.
With the network coming back online the team is thrilled, and from this, they will be adding various tokens back to the platform, this is beginning with the ETH/BNT converter.
More On The Token
After this was made public, the Bancor Network Token, referred to as the BNT, the price of the coin remained subdued. Thus, it led it to sink to about $2.5; this was at around 9:00 UTC. For a month now the value of this token has been sliding, this is from approximately $3.62 as the bear market was able to wipe out al the altcoins that were in the market.
Experts in the market had predicted this exploit to take place when they looked into the smart contracts, but at the time Bancor was reporting that this would be unlikely. The founder and also the CEO, Yo Sub Kwon of the smart contract security firm called Hosho, firmly believes that Bancor did not take all the necessary restrictions that have been put in place.
More Needs To Be Done On The Smart Contracts
It is due to the fact that Bancor claims that a wallet was hacked, and from here is where they were able to steal from a smart contract exploit, which is important to note has been a weakness that has always been there with their smart contracts, according to Kwon. It is clear that this current weakness is the reason this is so far reaching a single wallet has been allowed to be.
The smart contracts for the company allow for unlimited control for the users, and this is not all as the ability to control the wallet is currently inadequate. This was according to a statement that Kwon emailed to Cryptoinvest. He also added that any form of access to large sums of funds or even just access to powerful smart contracts should be using a multi-signature verification, this should be the minimum precaution put in place by the company.
A Little Clarification Forms The Company
But the company went ahead to clarify the current situation that no user wallet was actually hacked, it is actually an exploit that is affecting instead of the connector balance in the company, which was designed as a reserve wallet that is belonging to the exchange. It is through this reserve that the burning and also minting of the BNT coin that was made possible.
But this is not all, as the smart contract that was exploited has access to various smart contracts on the platform. As a result, it also led to the theft of NPXS tokens, referred to as the Pundi.
The Ethereum that was stolen is not retrievable, but the wallet that has been holding the haul has just been identified and has been put on watch. This exploit that has taken place in the company is yet another reminder that the current smart contract security is still being overlooked by many, thus the need for precaution to avoid such cases.