The value of NES tokens has plummeted significantly following the detection of suspicious activity and rapid sell-offs within the network. Blockchain observers suspected that one wallet minted approximately $55 million worth of NES tokens and began selling them on decentralized exchanges. This selling pressure caused the price of NES to drop by up to 40%.
According to available data, the specified address still holds approximately $18 million worth of NES. Therefore, it can be assumed that selling pressure on the market may continue.
Prior to the incident, it was reported that in the morning (Turkish time), around $12.35 million worth of 62.9 million NES tokens were transferred to the Ethereum mainnet. In the evening, it was claimed that liquidity was withdrawn and the tokens were sold on the market. However, data regarding the minting of $55 million worth of tokens and the transfer of 62.9 million NES tokens has not yet been independently confirmed.
The NESA team confirmed in a statement that they detected malicious behavior exploiting a vulnerability in the Layer 1 network, originating from Cosmos EVM. The team's statement included the following:
"We have identified malicious activity exploiting a Cosmos EVM vulnerability in the NESA Layer 1 network. We are working to contain the impact. We responded promptly. We will restore services after implementing a software patch and additional measures to ensure the secure operation of the network."
Nesa also stated that all cryptocurrency exchanges have been notified and that deposit operations will resume after the completion of necessary work.
*This is not investment advice.
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