Coinspeaker Nexera Burns 32.5M NXRA Tokens to Enhance Security
After facing a major security breach, decentralized finance (DeFi) protocol Nexera has announced the burning of 32.5 million NXRA tokens. This action is part of the protocol’s broader strategy to mitigate the damage from a hack that occurred on August 7.
The decision of NXRA burning will permanently remove the stolen tokens from circulation, restoring trust and stability within the Nexera ecosystem.
The Nexera Hack
On August 7, a hacker managed to exploit a vulnerability on Nexera, resulting in the theft of approximately $1.5 million worth of crypto, including 47 million NXRA tokens valued at around $1.76 million at the time. The stolen tokens were quickly sold off for Ether and partially transferred to the BNB Chain.
The Nexera team has taken several steps to address the attack. It froze the 32.5 million NXRA tokens that remained in the attacker’s wallet. Recognizing the potential long-term impact of these stolen tokens on the market, the decision was made to burn them. By doing so, Nexera aims to prevent these tokens from being used, traded, or circulated, thereby protecting the integrity of the NXRA token’s value.
On the other hand, a technical investigation revealed that its smart contracts were not compromised. This finding provided some relief to the community, as it indicated that the core infrastructure of the platform remained secure.
Market Reaction and Recovery
The immediate aftermath of the hack saw the price of NXRA plummet by over 53%, dropping from $0.62 to $0.29 in a matter of hours. However, following the token burn and the subsequent announcements, the market began to show signs of recovery. As of the latest data, NXRA is trading at around $0.04105, marking a 40% increase over the past 24 hours. The token’s market capitalization is also on the mend, currently standing at $31.5 million.
Major exchanges such as KuCoin and MEXC took swift action by suspending all services related to NXRA, including deposits, withdrawals, and trading. Additional exchanges were also notified and urged to take similar precautions. Nexera has strongly advised its users to refrain from trading NXRA until further notice.
Nexera’s team also has assured users that there is no need to issue a new NXRA token, and the existing token address will remain unchanged. Moreover, the NXRA tokens staked by Nexera users on Fundrs will be restored, according to the post.
Nexera has committed to providing a full post-mortem report in the coming days, which will offer a detailed account of the attack and the steps taken to address it.
The Bigger Picture
The Nexera hack is part of a troubling trend of increasing attacks on DeFi platforms. According to the latest update, the attack was a well-coordinated effort that targeted not just Nexera but multiple projects and protocols within the DeFi space.
In July 2024 alone, a series of high-profile hacks happened, including LI.FI (loss of $10 million), Bittensor wallet (loss of $8 million), and Rho Markets (loss of $7.6 million). This resulted in over $265 million in stolen cryptocurrency, with one of the largest incidents affecting the WazirX exchange, which lost an estimated $230 million.
These incidents underscore the vulnerabilities within the DeFi space and the ongoing challenges that projects face in securing their platforms against increasingly sophisticated attacks.
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Nexera Burns 32.5M NXRA Tokens to Enhance Security
