Coinbase suspends PlayDapp token trading in response to smart contract security breach

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Coinbase not too long ago halted buying and selling of the cryptocurrency PlayDapp (PLA) following a significant exploit of its good contract. 

This choice impacts a number of of Coinbase’s platforms, together with, Coinbase Prime, Superior Commerce, and Coinbase Alternate. This transfer was a direct response to actions taken by the Web3 gaming platform PlayDapp, which paused its smart contract’s performance on account of safety considerations.

The suspension was applied on Feb. 14, shortly after PlayDapp detected a security breach on Feb. 9. This breach concerned unauthorized entry to the platform’s non-public keys, resulting in the minting of 200 million PLA tokens, with an estimated worth of $31 million on the time. Blockchain safety corporations PeckShield and Cyvers Alerts offered insights into the breach, noting a compromise in the deployer’s address, which allowed the attacker so as to add their tackle as a minter.

In a bid to handle the state of affairs, PlayDapp initiated direct communication with the hacker, proposing a $1 million reward for the return of the stolen property. This supply was coupled with a warning of potential authorized motion, together with involvement from the FBI if the property weren’t returned.

Regardless of these efforts, PlayDapp’s customer support skilled downtime from Feb. 9 to 12, complicating the response efforts.

Elliptic, one other blockchain safety agency, detailed the escalation of the state of affairs with a further minting of 1.59 billion PLA tokens, valued at $253.9 million, on Feb. 12. This huge enhance in provide, in comparison with the pre-hack whole provide of 577 million PLA tokens, considerably challenges the hacker’s potential to liquidate the property with out detection.

In response to the continued challenges, PlayDapp announced the short-term suspension of its good contract on Feb. 13 as a part of a migration technique to safe the platform’s operations. Following the breach, the PLA token skilled a notable drop in worth, from $0.1823 to $0.1482, regardless of a rise in buying and selling quantity from $2.83 million to $60.17 million. 

Previous to this incident, PlayDapp had made headlines for its modern gaming options, such because the Along with the Gods play-to-earn game on the Polygon blockchain, regardless of going through sustainability challenges resulting in the sport service’s discontinuation in Might 2023.

In the meantime, PLA isn’t the one token not too long ago suspended by Coinbase. In its ongoing efforts to keep up a safe and compliant buying and selling setting, the platform had beforehand halted buying and selling for a number of tokens. This checklist consists of BarnBridge (BOND), DerivaDAO (DDX), Jupiter (JUP), Multichain (MULTI), Ooki (OOKI), and Voyager (VGX), reflecting Coinbase’s routine evaluation course of. 

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