Jimbos protocol has recently suffered from a massive hack attack. The media reports have covered that the protocol was targeted by hackers using an exploit. As a result, the crypto entity has ended up losing $7.5 million.
The data projection for the possible losses has been covered by a crypto security firm called PeckShield. As a result of this exploit hackers managed to steal around 4,090 ETH from the Jimbos protocol. At the current price, the value of the stolen ETH is approximately $7.4 million.
The timing of this hack attack is very coincidental since the crypto entity launched and introduced its 2nd version only 3 days ago. Incident reports of the hack have confirmed that hackers took advantage of the technical blind spot present in the slippage token system.
In essence, the hackers triggered the exploit by taking a flash load worth $5.9 million. These tokens are mostly used for lending operations without collateral that was paid back within a fraction of a second.
Rather than dodging critics, the protocol maintained more information on this matter will be shared with the stakeholders in the future.
Jimbos protocol is hosted on the Arbitrum blockchain. The dev on this project was determined to create a token that was known in the market for the most stable floor prices and physical assets reserves. It is also working on adopting various features from Olympus DAO that managed to gain considerable prices before plunging head-first into the ground.
Therefore, Jimbos is determined to maintain both its physical and virtual reserves. The company has grown more sustainable on account of the new changes introduced by the devs.
The administration of this project intends to use the native liquidity of the protocol to control its price and ensure that the earnings before taxes and other incentives are continually distributed among the stakeholders.
The first version of Jimbos was launched on May 16 this year but it was not able to remain operational since it contained some technical blind spots. Users were unable to access the project soon after its public debut on account of a bug present in the smart contract.
Soon after the management of Jimbos asked the users to discard the 1st version and join the second version of the project. However, during this event, the price of the native token of the project fell from $0.24 to $0.
Jimbos has Launched only Experimental Pilots Thus Far
The management of the crypto entity has maintained that it has launched only experimental pilots thus far. The statement has been updated on the official site of the Jimbos website. It entails that the developers are yet to introduce the main and the official version of the protocol.
At the same time, the protocol may also get an official native currency with a suitable amount of value before entering the market when the official and final real launch of the project will take place.
The site also notes that thus far the smart contracts of the project have not been conducted technical audit. The statement also warned the users from refraining from putting their money into the protocol as it has the potential to disappear at any given time.
Meanwhile, the project already got some traction coming in from the mentions of popular crypto investors such as DCF Gold. He shared his purchase in the latest tweet and after the losses tweeted that he was rugged referring to an event called rug pull in financial markets.