NFPrompt a platform nurtured by Binance falls victim to hackers resulting in a 10 decline in token value
NFPrompt, a cutting-edge art and NFT trading platform powered by artificial intelligence and backed by Binance, recently fell victim to a serious security breach that is now under investigation by the FBI.
According to an official statement, the attackers managed to infiltrate the platform, resulting in unauthorized withdrawals from the NFPrompt treasury, user accounts, and administrator wallets. However, NFPrompt swiftly regained control of its digital assets by transferring the management of its smart contracts to new, secure addresses. This move has provided reassurance to stakeholders that their assets are now safe.
In the aftermath of the breach, the platform’s native token, NFP, experienced a significant 10% decline as a number of users hastily sold off their holdings. The token was launched just three months ago, around the holiday season, and had been enjoying positive growth until this setback. Despite the recent breach dampening the bullish momentum for NFP, the token has still managed to achieve a remarkable 20% increase in value over the course of a month, as reported by CoinGecko.
To prevent further risks, proactive measures have been implemented, including collaboration with centralized exchanges to suspend deposits and recommendations for decentralized exchanges to cease liquidity pool activities involving the NFP token. Additionally, specific exchanges have been instructed to freeze any transactions linked to the suspected parties behind the breach.
NFPrompt was introduced in 2023 and offers users the ability to create and register AI-generated art as NFTs on the blockchain. Binance’s venture arm, Binance Labs, selected NFPrompt to participate in its sixth season of the incubation program back in September.
In related news, Bitcoin has recently retreated from its record high amidst warnings from analysts of a potential 20% market correction.
