Chainlink (LINK), the 5th largest cryptocurrency by total market cap and technically the largest DeFi project, has been one of the projects that lost the most value in recent weeks. The sharp decline experienced after the LINK price climbed up to $ 20, pulled the LINK / USD pair to $ 12.40 as of now. A news emerging now shows the reason for this decline more clearly.
Chainlink stands out as a decentralized finance protocol, and therefore nodes in the network are very critical. According to a new report, the attack last weekend severely damaged 9 network nodes and operators in total. The August 30 attack on network nodes, the backbone of the decentralized network, seems to have exceeded hundreds of thousands of dollars.
Over 700 ETH Stolen in Chainlink Attack
It is emphasized that more than 700 Ethereum (ETH) were stolen in the attack carried out last Sunday. According to the price at that time, this indicates a loss of $ 335,000. It is also among the information that the attack was made directly online, that is, to hot wallets.
According to information relayed by a closely related source to The Block, the attacker initially sent a valid price data request, causing the network nodes to pay too much gas fees. Chainlink network operator Certus One also shared details on the subject. CEO Hendrik Hofstadt stated that they gave 20 ETH to this attack and that the incident was noticed later.
It is stated that the attack took approximately 2 hours. The attack was not carried out using methods such as unauthorized access, as in other crypto currencies. Instead, it was able to generate Chi gas tokens using the gas balance of the attacker network operators. These tokens are generated by the decentralized exchange 1inch.Exchange.
To put it more simply, the attacker requests a price stream and the network node responds and spends gas. The attacker also manages to seize some of the gas amount in this expenditure, technically ETH, by making constant requests.
The LINK price may decrease even more with the effect of this news.