VeVe Shuts Down NFT Marketplace After CoinQuora Mined In-App Tokens

VeVe Shuts Down NFT Marketplace After In-App Token Mining

  • VeVe, an NFT marketplace, faced an exploit on Tuesday that resulted in the illegal acquisition of millions of in-app tokens, known as gems.
  • VeVe acknowledged the exploit on Twitter (NYSE:) on Wednesday.
  • The exploit led to a sharp drop in the prices of NFTs listed on the platform.

VeVe, an NFT marketplace with licensed digital collectibles, faced an exploit on Tuesday that resulted in the illegal acquisition of millions of in-app tokens known as gems. Veve is popular for becoming the official launch partner of mainstream brands such as Coca-Cola (NYSE:), Pixar, and Marvel.

In an official tweet on Wednesday, VeVe acknowledged the exploit on its platform and claimed that the attackers managed to illegitimately acquire a “large amount” of gems. Pending the completion of the investigation, the app-based NFT platform has closed the market as well as gemstone purchases.

The platform also restricted several accounts of users who attempted to purchase gems from fraudulent accounts.

Gems are in-app VeVe tokens that users can redeem for collectibles during market declines. Early reports show that the cybercriminals behind the exploit managed to mint millions of gems without having to pay for them. They were able to do this by exploiting a bug in the platform’s buying mechanism.

Gem exploits on VeVe have caused the prices of NFTs listed on the platform to drop sharply. Users experienced a price drop of up to 80% in the value of their NFTs.

A Twitter user shared a timeline of events from the exploit. According to the user, VeVe first recorded the largest 3-day purchase of in-app token gems. This milestone was then followed by the price of the token collapsing by half from 0.5 to 0.25. The marketplace then went into maintenance.

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About Donald J. Beadle

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