Suspicion Arises: Protocol's Token Value Tanks

Grand Base, a decentralized finance protocol operating on the Base network, has plunged nearly 100% in value following reports of suspicious token minting activity. Concerns of a potential rug pull emerged after the crypto community noticed a significant minting event conducted by the protocol's deployer.

Minting Madness: Millions of Tokens Added

On April 15, the deployer address associated with Grand Base minted an additional 22.5 million GB tokens, valued at approximately $47 million. This sudden influx of tokens caused the token's value to plummet to $0.0049, triggering alarm bells within the community.

Response from Project Spokesperson

In an attempt to address the mounting concerns, a spokesperson for Grand Base spoke out in a Telegram channel, attributing the minting incident to an exploit of the project's deployer wallet. The spokesperson assured users that the team is actively collaborating with the MEXC crypto exchange to halt trading activities associated with the exploited tokens.

Project Background and Initial Success

Launched in early 2024, Grand Base aimed to revolutionize the decentralized marketplace by offering exposure to spot synthetic real-world assets (RWAs) without requiring investors to hold the underlying assets. The project gained significant traction, with its GB token generating millions of dollars in daily trading volumes, according to data from CoinGecko.

Scrutiny and Smart Contract Flaws

Despite its initial success, Grand Base faced scrutiny due to a flaw in its smart contract that allowed developers to mint new tokens without any limitations. This concerning feature was highlighted by CoinGecko on Grand Base's price page, raising questions about the project's governance and security measures.

Ongoing Investigation and Uncertain Future

As of press time, MEXC, the crypto exchange involved, has not issued any public statements regarding the matter. Additionally, the method through which the exploiter gained access to the deployer wallet remains unclear, leaving investors uncertain about the project's future and raising concerns about the broader security of DeFi protocols.