A trader recently suffered a significant loss of over one million dollars in cryptocurrency due to a hard fork of the 0L network. Sharing their unfortunate experience on the social media platform X, the trader, known as NN, expressed frustration over the community’s disapproval of the 0L network’s hard fork.
NN had invested in 147 million Libra tokens back in February 2023, amounting to roughly $1.47 million at that time, before becoming involved in the protocol to assist with marketing efforts.
According to NN, the team had been aware of a bug for more than two years, with some insiders allegedly exploiting it. However, due to the perceived low value of the Libra token, the team chose to overlook the issue.
The hard fork was triggered by a bug in the smart contract, allowing insiders to expedite token unlocking by spreading them across multiple wallets. Despite claims that the loophole persists in the latest version of the 0L Network, v7, the team opted not to address it directly.
Rather than fixing the loophole, the team decided to fork out all wallets suspected of exploiting it. NN noted that innocent wallets were inevitably affected, as it was impractical to trace all tokens. Despite diversifying token purchases across six different validators, NN’s wallet suffered significant losses due to one validator labeled fraudulent by the team.
Summary Review: The incident underscores the risks associated with investing in cryptocurrencies and participating in decentralized networks. While hard forks are intended to address issues and improve network functionality, they can also result in substantial financial losses for unsuspecting investors. The situation highlights the importance of thorough due diligence before investing in any cryptocurrency project and the need for transparency and accountability within decentralized communities. As the cryptocurrency landscape continues to evolve, it is crucial for investors to stay informed and cautious to mitigate potential risks and protect their assets.
Disclaimer: Remember that nothing in this article and everything under the responsibility of Web30 News should be interpreted as financial advice. The information provided is for entertainment and educational purposes only. Investing in cryptocurrency involves inherent risks and potential investors should be aware that capital is at risk and returns are never guaranteed. It is imperative that you conduct thorough research and consult with a qualified financial advisor before making any investment decision.
