Treasure’s MAGIC Token Sinks 33% After Hackers Steal ‘Smol Brains’ NFTs

Treasure’s native token $MAGIC on Thursday morning nosedived 33% after hackers of the Arbitrum-based marketplace stole ‘Smol Brains’ NFTs.
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Quick take

  • Breached NFT marketplace Treasure is returning stolen ‘Smol Brains’ NFTs to users.
  • The Arbitrum-based marketplace announced Thursday they had identified and rectified the cause of the issue.
  • Treasure’s native token $MAGIC plummeted 33% in the early hours of the Asian trading session.

The $MAGIC token plunged 33% on Thursday morning after Treasure NFT marketplace hackers stole ‘Smol Brains’ NFTs. Hours later, developers announced on the discord channel of the Arbitrum-based marketplace that they had identified and rectified the cause of the issue. 

“This was a basic bug arising from a prior fix that should have been identified earlier,” the Discord message read. One $MAGIC token holder @brokeboy96 posted a page showing that the stolen NFTs were being returned.

The marketplace has created a remuneration plan voted on and passed by the community members to compensate users that fail to receive their stolen NFTs back.

“Once we have the full list of remaining impacted parties who did not receive back their stolen NFTs, we will propose a number of remediation options to ensure users are made whole. These options will be tabled with the community and voted on by the DAO,” the note read.

Treasure has created a decentralised autonomous voting system based on its native token $MAGIC. Users can participate in key decisions about the future of the marketplace. 

Arbitrum is a Layer 2 scaling ecosystem built on the Ethereum network to provide faster execution of transactions at reduced fees.

Treasure hackers exploited a weakness in the blockchain protocol, allowing them to mint NFTs at no cost, prompting the NFT marketplace to ask users to delist their NFTs. Some reports indicate that the stolen collection of ‘Smol Brains’ and ‘Legion’ NFTs amounted to about $1.4 million as of the early Asian morning hours.

As of this writing, the $MAGIC token had bounced back to trade at about $3.34 after off the session lows of about $2.70.

Treasure launched its NFT marketplace on Arbitrum late last year, with its Legion battler game debuting early this year.

It is one of the few community-run NFT marketplaces that offer both metaverse gaming and non-fungible tokens, as well as, a native token for its DAO.

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