Altcoins

Polygon(MATIC) Price Could Have Plunged 10x To Go Beyond $3, But This Happened!

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Highlights

    Polygon network sees a rise in the number of large transactions and active wallets.

    Former De-Fi enthusiast comes to Polygon’s rescue, helping them save $850 M.

Polygon is one of the altcoins, which has been on traders’ radar. The altcoin at press time is trading at $1.57 with gains of 1.1% for the last 24-hours. The market cap of the coin is $10,581,777,683. While the 24-hour trading volume hovers around $789,086,578.The MATIC price falls short of its ATH of $2.62

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According to substantial reports, the number of large transactions of Polygon has risen sharply. The number of active wallets has increased sharply. While social volume is low, social sentiment weighs high. Which gives hope for brighter days in the near future.

Polygon’s Bug Could Have Cost $850 M of Users Funds

 About $850 M funds of Polygon users were at stake to exploitation due to a double-spending bug in the Polygon Plasma bridge. Debugger Gerhard Wagner cracked the bug in time and was rewarded a $2 M bounty for the task. 

Wagner finds that the published contracts that lock up the funds on L1 when users move funds to and from the network. The contract is known as “Deposit Manager Proxy”, and it holds tokens valued at close to one billion USD. The donee speculates the possibility of the bug could be due to using someone else’s code, without a complete understanding of the same.

The vulnerability was found in one of the bridges between the Polygon and Ethereum blockchains. Although a Plasma bridge is supposed to be more secure. The bug allowed the amount to be withdrawn up to 223 times. 

Also Read : Missed BTC & ETH ? Here Are Top 6 Altcoins Traders Can Bet This Bull Season !

How Could the Bug Turn Heavy for Polygon’s Pocket?

Once a large amount of ETH tokens is deposited to Polygon through the Plasma bridge. Post confirmation of the funds being available on the Polygon network. Users could start the withdrawal process, Then wait for a week for an exit to be valid. Resubmit the payload exit, by using a modified first byte of the branch mask. 

The same valid transaction could be submitted up to 223 times, with different values for the first byte of the HP encoded path. Yielding massive returns. However, exploiting the vulnerability would need some investment up-front. The bug could enable wicked users to gain 223 times the amount, on top of the initial deposit.

Collectively, the bug could cost immense losses, to the Polygon network. Further loosening its foothold in the market. Which could eventually plunge the crypto to extreme lows. However, the debugger’s timely solution has helped the network withstand the uncertainty. 

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Disclaimer : The opinion expressed here is not investment advice – it is provided for informational purposes only. It does not necessarily reflect the opinion of Coinpedia. Every investment and trading involves risk, so you should always perform your own research prior to making decisions. We do not recommend investing money you cannot afford to lose.

Mustafa Mulla

Mustafa has been writing about Blockchain and crypto since many years. He has previous trading experience and has been working in the Fintech industry since 2017.

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