Harmony ONE Plummets 40 Percent After Major Security Exploit

Harmony saw its native token ONE drop by 40 percent on Wednesday following a severe security exploit. Attackers reportedly managed to mint 4 billion new tokens, which amounts to roughly 26 percent of the total supply. This massive surge in circulating volume triggered immediate panic selling among investors who feared significant dilution of their holdings.

In response, the Harmony team released an emergency software update to block further unauthorized minting. They are now urging all network validators and operators to install this patch immediately to secure the chain. While the update stops new tokens from being created, it does not automatically remove the 4 billion tokens already in circulation. The project is currently exploring options like a potential blockchain rollback to return to a state before the attack.

To limit the impact, Harmony has temporarily paused its token bridge and contacted centralized exchanges to freeze funds linked to identified wallet addresses. Despite these efforts, uncertainty remains high as the project has not yet fully explained how the vulnerability occurred. Traders are keeping a close watch on the price, which is currently sitting in deeply oversold territory according to technical indicators.

If the situation stabilizes, bulls may try to push the price back toward the 0.00112 level. However, if the negative sentiment persists, the token could face further pressure toward the 0.00050 mark. Investors should monitor official updates from the Harmony team regarding the potential for a network rollback or other recovery measures.