Tinyman Exploited with approx $3Million!

• A decentralized shopping and selling platform got hacked and it turns out the exploitation of $3 million
• The platform had officially announced about it and alerted its users to remove funds
• The value of liquidity pools has gone down from $43 million to $20 million

Tinyman is a decentralized trading platform used for shopping and selling based on Algorand Blockchain Network. On 1 January 2021, they came to know about a hacking, and it moved approx $3 million worth of assets from their liquidity pool. Being on a decentralized network, reversing theft and recovering the amount is also not possible. 

Algorand is a decentralized self-sustained blockchain network that works on Proof-of-stakes mechanisms. It is meant to be a secure, efficient, and scalable network with real-world applications. The network went live in June 2019. Tinyman was one of the platforms operating on the blockchain-based on Smart Contracts. 

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Hackers have found a tidy bug in its contract, accessed the platform’s liquidity pool, and moved around $3 Million of assets. As its recovery is not possible, Tinyman officially announced the hacking and told stakeholders to move their assets as soon as possible. The platform said on Twitter that they are still facing the attacks, and the moving of money from the pool had not stopped yet. 

After the incident happened, a large chunk of the amount from the pools had been taken back by stakeholders. It dropped down from $43 million to $20 million. The panic between the investors and users is obvious. Here a measure of precaution could be to do as the team suggested, remove the funds and all.

Users and Investors don’t have a lot to do from their end, it’s just they need to be aware about these kinds of unwanted losses too. As every investor already knows, not keeping all the eggs in one basket, diversifying the investment and asset management. 

Although these kinds of attacks and hackings create an unwanted chaos not only for the related platform and network but for all the blockchains. Hackers might always be looking for the little loopholes wherever they can, it’s not anything which needs to be mentioned. Although looking after all over safety and securing the network is what they do from time to time. But these incidents raise questions and it’s just that these platforms need to put extra effort and try to find out the flaw before any hacker does. It might save a lot of valuable assets of users and maintain the trust in technology as well.