The most popular sports NFT minting platform, Lympo Sports, was attacked earlier this week, with the hackers making away with over $18 Million worth of tokens.
Unexpected NFT Action
It seems like NFTs went from being unknown to becoming the most used buzzword within crypto circles over a short period. One of the most unfortunate results of this sudden interest in NFTs is that NFT wallets and marketplaces have become one of the most sought-after targets for hackers and malicious organizations.
Over the past few months, we’ve witnessed a considerable amount of wallets and NFT marketplaces get hacked, and it doesn’t seem like the hacks and attacks will reduce or become a thing of the past anytime soon. What we’re witnessing now is a cat and mouse game between legitimate NFT stakeholders and malicious elements; legitimate holders are working around the clock to stay protected and multiple steps ahead of hackers, while hackers are working non-stop to gain access to legitimate accounts and marketplaces.
As time goes on, naturally, NFT attacks will become less frequent, and hackers will launch more sophisticated attacks against more significant holdings.
A quick internet search will show that Lympo Sports are proud of the fact that they’re #1 in the world of sport NFT minting. It was a big blow to learn that Lympo Sports suffered a devastating hack on January 10th, 2022, and this hack led to the loss of just under $19 Million in $LMT tokens.
Lympo Sports, a subsidiary of Animoca Brands, is well known for creating beautiful characters for sports stars. Lympo Sports also mint sports memorabilia that are popular among NFT enthusiasts.
On January 10, Lympo realized that an unidentified “entity” had gained access to their hot wallets, which led to much worry within the Lympo Sports team. After investigation, they discovered that 10 of their addresses were empty, and after the dust settled, 167.2 Million $LMT tokens were gone. At the time of the hack, the market value of the tokens in the “hot” wallets was $18.7 Million, and the story gets worse for Lympo Sports and their investors.
Sports NFT Minting Platform Loses value
In a sad turn of events, after the attack on Lympo Sports, their $LMT token lost about 98% of its value, meaning that the price of each $LMT token fell from $0.1141 to only $0.0022. Over a few hours, 98% of value was lost by one of the most exciting NFT platforms in the space.
Fortunately, as bad as the situation is for Lympo Sports, it could have been worse; thankfully, the company saved the majority of their tokens in “cold” wallets, and these wallets were unaffected throughout the attack.
Lympo has shared their recovery plans, and immediately after the attack, they took key crisis management steps to secure the future of their tokens.