Harmony's ONE Token Slides 40% After Exploit Mints About 4 Billion Tokens
Harmony's ONE token sank about 40% on Wednesday after an apparent exploit led to the creation of roughly 4 billion new tokens, a figure equal to about 26% of the existing supply.
Harmony confirmed the incident and told network operators and validators to install an emergency software update designed to stop any further minting. The project said the patch blocks additional unauthorized issuance, but it does not address the status of tokens already created. Harmony said it is still assessing how to isolate or remove those assets from circulation.
Before the incident, ONE's supply stood at around 15 billion tokens. Adding another 4 billion would represent a sudden increase of roughly 26%, raising dilution concerns for existing holders. Traders also weighed risks tied to exchange deposits and the possibility of reversing blockchain history.
Harmony has not formally confirmed the total number of tokens minted or detailed how the reported 4 billion estimate was derived. The network, once among the sector's largest, reached an estimated market capitalization of about $4 billion in January 2022.
As a containment step, Harmony temporarily paused its token bridge to reduce the chance of compromised assets moving across networks. It also asked centralized exchanges to block and freeze funds linked to four wallet addresses associated with the exploit. The project said exchange cooperation could limit losses if the assets remain identifiable, though recovery becomes harder if the tokens are routed through decentralized exchanges, bridged to other networks, or split across additional wallets.
The emergency update is intended to close the vulnerability, but it requires broad adoption by network operators to take full effect. Harmony has not disclosed the underlying flaw, how minting authority was obtained, or whether other parts of the protocol may be exposed. The project said it is considering patch and rollback options, with a rollback potentially reverting the chain to a pre-exploit state. Such an action could remove unauthorized tokens still on Harmony, but it could also unwind legitimate transactions made after the chosen rollback point.
Market view: ONE/USD remains deeply bearish on the 4-hour chart, down 40% over the past 24 hours. The token briefly fell to $0.000605 before rebounding to trade above $0.00074. Technical signals cited include an RSI of 12, indicating oversold conditions, and MACD lines consistent with bearish momentum. If selling pressure continues, ONE could retest $0.000605 and move toward the $0.00050 psychological level. If buyers regain control, traders may target the $0.00112 level on the 4-hour chart.
