NetMind AI, a blockchain-based cloud computing platform, has refuted rumors of a widespread hack on its platform after its native token, NMT, experienced a dramatic price plunge on March 15th. The team clarified that the token crash was caused by an exploit involving an individual miner, not a platform-wide compromise.

NetMind operates a blockchain network called NetMind Chain, where GPU owners can contribute computing power and earn NMT tokens as rewards. The platform also has a version of the NMT token on the BNB Smart Chain.

Around 1:15 PM UTC, the price of NMT plummeted from $11.34 to $2.77, a staggering 76% decline, sparking speculation of a possible mint exploit that allowed an attacker to create an unlimited number of tokens and dump them on the market.

In response to the rumors, the NetMind team took to X (formerly Twitter) at 4:19 PM UTC, acknowledging the situation and attributing the mass sell-off to an "exploit/hack related to one of the network's early miners who mined 440k $NMT." The team emphasized that the NetMind platform itself "has not been compromised by any hack or malfunction."

The team's statement appears to have calmed the markets, as the token's price has since recovered significantly. At the time of publication, NMT was trading at $9.70, representing a 250% increase from its lowest point and only a 14% decrease from its pre-incident price.

Blockchain data on the BNB Smart Chain shows that the address associated with the exploit bridged multiple batches of tokens from the NetMind Chain to the BNB Smart Chain and subsequently sold them on PancakeSwap, a decentralized exchange. However, it remains unclear whether these sales coincided precisely with the timing of the price drop.

While the situation has been addressed, the NetMind team is actively working on mitigating the impact of the exploit and ensuring the platform's security moving forward.