The security of blockchain platform Nuls has been breached recently, resulting in the theft of $480,000 worth of NULS tokens.
Revealed to the public by a tweet on Monday, 2 million NULS tokens were transferred by hackers, among which 548,354 tokens entered the trading market and can no longer be traced.
Notably, the compromised tokens make two percent of the company’s total token circulation of over 73 million.
*Security Update* pic.twitter.com/GN41agKgi1
— NULS (@Nuls) December 22, 2019
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To stop the hackers from cashing out the compromised tokens, the company has decided to undergo a hard fork on the network.
“We decided to conduct a hard fork process at the height of 87,800. After the hard fork, the remaining 1451645.65303905 NULS that has not entered the trading market will be destroyed in a permanent freeze to prevent continued flow into the market and bring loses to community members,” the announcement stated.
Is hard fork a good option?
This is the same strategy that was adopted by Ethereum after the in-famous DAO hack. That hard fork created a difference of opinion among the members of the community and resulted in a split of the Ethereum blockchain, creating two coins – Ethereum and Ethereum Classic.
Though the exact timeline of the network upgrade has not been decided, the company said it would arrange for the hard fork “ASAP.”
Mentioning the attack on the network, the company explained that its NULS 2.2 version had some vulnerabilities.
Unlike other hacks, the news of the attack made no significant impact on the market value of the token. In the last 24 hours, NULS token shed around 0.55 percent of its value, while weekly loss stands at over 13 percent.
Last month, the South Korean crypto exchange UpBit was hacked, and attackers stole around $50 million in Ether.