Griffin AI (GAIN) Plunges 87% Following Mint-and-Dump Attack
GAIN, the native utility token of Griffin AI, has suffered a dramatic 87% plunge following its market debut yesterday.
On-chain investigations revealed that the collapse was pushed by an attacker minting an extra 5 billion tokens and dumping them into the market, devastating early traders and sparking safety considerations.
Why Did GAIN Token’s Price Crash?
For context, Griffin AI is a no-code platform for constructing, deploying, and scaling autonomous artificial intelligence (AI) agents. The mission powers greater than 15,000 stay brokers, enabling customers to create instruments for transaction execution, analysis, yield farming, and more.
The GAIN token powers the Griffin AI ecosystem by enabling entry to advanced agents, AI service credit, and operator collateral. It additionally helps creator instruments. Looking forward, staked GAIN will assist safe the node community and align incentives throughout contributors.
The token’s buying and selling began on Binance Alpha on September 24, accompanied by an exclusive airdrop for users holding a minimum of 210 Alpha Points.
“Binance Alpha is the primary platform to function Griffin AI (GAIN), with Alpha buying and selling opening on September 24, 2025, at 11:00 (UTC),” Binance posted.
Furthermore, GAIN additionally secured itemizing on different main centralized exchanges, together with KuCoin, HTX, MEXC, and Gate.io. However, its launch was adopted by an enormous worth drop.
BeInCrypto Markets information confirmed that GAIN’s worth has dipped by almost 87%, inflicting substantial investor losses. At the time of writing, the altcoin was buying and selling at $0.027.
Amid the value drop, day by day buying and selling quantity surged 126% to $96 million, with decentralized exchanges (DEXs) accounting for almost all of exercise.
Inside the GAIN Mint-and-Dump Attack
But what induced this sharp dip? On-chain analytics confirmed that uncommon exercise began a number of hours in the past. A pockets handle 0xF3d17326130f90c1900bc0b69323c4c7e2d58Db2 minted 5 billion GAIN tokens, inflating the entire provide from the unique 1 billion.
“Tracing the supply of funds upward, it’s a brand new handle that obtained ETH from Tornado 13 hours in the past, transformed to BNB through Symbiosis cross-chain,” an on-chain analyst noted.
The attacker sold 147.5 million tokens on PancakeSwap, a number one multichain DEX, netting 2,955 BNB (roughly $3 million)
According to EmberCN, the two,955 BNB have been transformed by deBridge into 720.81 ETH and distributed into the next six wallets:
- 0x1afc80d0E15cBCBfAAB9aD5520b4ab843Dfd648D
- 0xD4d83C2BC58B97d6458a7AE7d5b417c5422DC04C
- 0xB31BDDb3d1c2b45E5c5fE149Aa4c8304e9D1916C
- 0xa6654f227EcCF2f84476d2d51434081613F8Baba
- 0x107E83EBE677DDec253C440127F23310720177c2
- 0xf1755A2b7d0e418E9BAB4F81AD674fa39fA7F23D
The analyst added that the funds are beginning to circulation into the Tornado Cash for obfuscation. Meanwhile, GoPlus Security later confirmed the exploit stemmed from an unauthorized LayerZero peer setup, much like a previous assault on the Yala mission.
“The attacker (seemingly insider or through social engineering assault) added a faux LayerZero Peer on Ethereum, minted faux TTTTT tokens, and used it to bypass cross-chain checks — then minted 5 billion GAIN on BSC,” GoPlus Security posted.
The occasion has attracted substantial criticism from the group, with many customers reporting losses from the incident.
“We settle for losses, however not fraud. In the market, if we lose cash by truthful competitors, then a loss is a loss — we settle for it. But what do you name this sort of malicious minting and dumping?” a person stated.
Nonetheless, some agree that this could possibly be the work of an outsider and never the core staff itself.
“The operation doesn’t seem to be one thing the mission staff would do; it’s too blatant and audacious… It appears to be like like somebody exploited a minting vulnerability, however we’ll anticipate the official announcement,” one other analyst added.
Still, the crash has considerably eroded customers’ belief. In response, the Griffin AI staff issued a press release on X confirming the exploit’s mechanics. Moreover, the staff has additionally taken down the approved liquidity pool on BNB Chain to defend holders and requested exchanges to freeze GAIN exercise.
“Please DO NOT work together with any LPs which may be created by the attacker. They should not official and pose a threat. ETH GAIN stays protected,” the post learn.
The GAIN exploit has left traders reeling and forged doubt on Griffin AI’s token launch. While the staff is working to mitigate the breach, it stays unsure whether or not these measures will restore confidence or enhance the token’s worth motion.
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