Security Breach at Binance-Incubated NFPrompt Causes Token Value to Drop

Security Breach at Binance-Incubated NFPrompt Causes Token Value to Drop

NFPrompt, an AI-driven platform for art and NFT trading, backed by Binance, has experienced a significant security breach, resulting in a notable downturn in its associated token’s value. The FBI is currently investigating the incident, which involved unauthorized access to the NFPrompt treasury, user accounts, and administrator wallets. Following the attack, the NFPrompt team took swift action to secure its digital assets, transferring control of its smart contracts to new, more secure addresses.

The breach has led to a precipitous 10% drop in the value of NFPrompt’s NFP token as stakeholders rushed to liquidate their holdings. The token, which was launched around Christmas last year, had begun to show promising growth just last week. Despite the setback caused by the security incident, the token has still managed an overall 20% increase in value over the past month, according to data from CoinGecko.

In response to the breach, NFPrompt has implemented several measures aimed at mitigating further risks. These include coordinating with central exchanges to halt deposits and urging decentralized exchanges to suspend liquidity pool activities for the NFP token. Additionally, certain exchanges have been directed to freeze transactions linked to the hackers.

NFPrompt, established in 2023, offers a unique platform that allows users to create and register AI-generated art as NFTs on the blockchain. Binance Labs, the venture arm of Binance, recognized the platform’s potential and included NFPrompt in the sixth season of its incubation program last September.

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