Pigeoncoin Suffers From Bitcoin Blockchain Bug Exploit, 235 Million Tokens Artificially Produced
A severe bug in the Bitcoin code was just recently discovered and exploited. However, you can be calm if you are a Bitcoin holder because you are not in any danger. The bug was only used to exploit a lesser known currency called Pigeoncoin.
The developers behind Pigeoncoin have stated that an unknown miner used the bug on September 26 to print 235 million Pigeoncoins. Together, these tokens amount to $15,000 USD, less than 3 Bitcoins.
While the bug was patched on Bitcoin, some coins that simply took its code did not do it, which made them vulnerable if they did not correct their code. The bug gives an attacker the ability to print as many currencies as one can. You can even go above hard coins by doing it. This often creates inflation and diminished the value of the tokens.
Set apart from Bitcoin by using the X16r mining algorithm, Pigeoncoin does not even rank in the Top 1,000 cryptos, but by creating so many tokens (the hard cap of the token is 970 million coins), the attacker prompted one of the only exchanges to accept the token, CryptoBridge, to suspend trading these tokens while the developers try to fix the issue.
Soon after the inflation was detected, the devs released a fix borrowed from the BTC team and urged pools and exchanges to upgrade immediately. The main problem that one can take from the situation is that Bitcoin was really very vulnerable before.
After The Attack
The Pigeoncoin community is waiting for the hacker to dump his coins. People are talking about the event on the Discord channel and there is a consensus that the money will probably not be dumped all at once because it would be too easy to track. Because of this, it is expected that the attacker will slowly use the money and turn it into fiat.
Another relevant concern that many people have is that other tokens can be affected by this problem, as this case is the only one known so far. Fortunately, other relevant coins like Litecoin have already upgraded, so they will not be prey to the same kind of attack.