$PAID, the native token of PAID Network, crashed by more than 70% in less than an hour. This is believed to be due to an attack on the network itself.
It looks as if over 59 million tokens were minted and sold through Uniswap. This resulted in the price dropping by more than 80% in mere minutes.
The belief within the crypto community is that this was a rug pull exploit, as the owner of the contract had the ability to mint new tokens. The Block research analyst Igor Igamberdiev spoke to this idea.
“Looks like casual rug pull. $PAID deployer made an attacker the owner of $PAID admin contract. This attacker deployed a new implementation contract for $PAID token and minted almost 60M tokens.”
For their part, $PAID released a statement on the hack. “We are investigating the issue. We pulled liquidity, are creating a new smart contract, & will be restoring everyone’s original balances to before the hack. Those with staked, Lpool & UniFarm $PAID will have their tokens be sent to them manually.” They added a promise to share more updates soon.’
PAID Network is one of the most popular Initial DEX Offerings in the crypto community. It took place on Polkastarter’s platform some time ago and has brought outstanding returns to private sales investors.
Many throughout the crypto community had a reaction to this shocking development. The Gem Hunters on Twitter advised users not to buy the dip, but also those holding to not sell either. They expressed the belief $PAID would handle the issue and come up with a solution professionally.
They pointed to founder Kyle Chasse not wanting to risk his reputation, especially for an amount of money that doesn’t affect him much.
Kyle Chasse took to his personal Twitter for a response to this issue.
“If you have liquidity in uniswap please pull it out so the attacker can not sell any more $PAID tokens, please share this. $PAID token holders please don’t worry, everything will be made whole.”
Chasse also thanked his supporters. “Thank you so much to everyone reaching out showing love and support, sorry I’m not replying, head down trying to resolve this.”
On the other side of the spectrum, War on Rugs has previously expressed a belief in $PAID to be a scam. They added that the owner can mint tokens and did mint tokens to fresh wallets who never bought the pre-sale. War on Rugs also pointed out that the main contract is behind an opaque proxy. They can swap the contract with a malicious one that can rug.