Ethscriptions, a recently launched protocol on the Ethereum network that allows the creation and sharing of digital objects, has suffered a significant setback. The protocol's creator, Tom Lehman, announced that the Ethscriptions main marketplace was hacked. Although the protocol itself remains unaffected, a substantial number of Ethscriptions listed on Ethscriptions.com were stolen.
The exploit resulted in the loss of approximately 202 ethscriptions from 123 individual addresses. The exact value of the stolen ethscriptions is yet to be determined, but recent sales data from the NFT marketplace OpenSea indicates that some ethscriptions have been sold for up to 5 Ethereum (approximately $9,600) in the past month.
Tom Lehman expressed his disappointment over the theft, particularly highlighting the loss of Ethscription #56, which he described as "brutal." The stolen ethscriptions hold significant value due to their rarity and historical significance within the Ethscriptions ecosystem. Lehman had intended for the marketplace to serve as an example for other platforms supporting Ethscriptions, but the exploit has hindered this objective.
The responsibility for the failure lies with Lehman, who acknowledged that a smart contract created by him and Michael Hirsch contained a snippet of code that allowed unauthorized withdrawal of ethscriptions from the marketplace. Lehman emphasized the need for strategic contract usage and the provision of necessary information to prevent such exploits.
Lehman plans to relaunch the Ethscriptions.com marketplace once the required changes are implemented in the protocol. He expressed gratitude to those affected by the exploit, praising them as "the earliest adopters" of the Ethscriptions protocol. Ethscriptions differ from traditional NFTs as they are stored in transaction-level data instead of being issued as tokens on Ethereum. The emergence of Ethscriptions follows the popularity of Ordinals, which enables the creation of NFT-like assets on Bitcoin, leading to further experimentation in the cryptocurrency market.
The hack of the Ethscriptions marketplace highlights the vulnerabilities and risks associated with cryptocurrencies, including Ethereum. Such incidents can have a significant impact on the value and perception of Ethereum and its associated tokens in the Forex market. Traders need to closely monitor developments in the cryptocurrency space, including security breaches and the implementation of enhanced protocols to prevent similar exploits. The incident serves as a reminder of the importance of conducting thorough risk assessments and due diligence when engaging in cryptocurrency trading. By staying informed about the latest news and taking precautions, Forex traders can navigate the evolving landscape of cryptocurrencies more effectively.