GMX crypto price outlook after team explains $40m hack
2025-07-09 19:05:15
Main Idea
The GMX crypto token experienced a significant drop in value following a hack on its platform, which exploited a flaw in the pricing mechanism and resulted in the loss of approximately $40 million.
Key Points
1. GMX token price dropped to $10.20, its lowest since April 7, marking a 40% decline from its July high and a 76% drop from its November peak.
2. The hack on GMX V1 on Arbitrum led to the draining of $40 million worth of tokens from the GLP pool into an unknown wallet.
3. GMX paused trading on V1 and halted the minting of GLP tokens as a response to the exploit; mining of new tokens on GMX V2 was also suspended.
4. Blockchain security firm SlowMist identified the exploit as stemming from a flaw in GMX’s pricing mechanism, allowing manipulation of GLP token pricing through a reentrancy attack.
5. GMX joins other exploited platforms in 2025, including Bybit, Coinbase, and Cetus Protocol, which suffered losses ranging from $180 million to $400 million.
Description
The GMX crypto token nosedived on July 9 after the popular perpetual exchange on Avalanche and Arbitrum was hacked. GMX ( GMX ) token plunged to a low of $10.20, its lowest level since April 7. The token has dropped nearly 40% from its July high and is now down 76% from its November peak. In an X post, the GMX team confirmed that GMX V1 on Arbitrum had been exploited. Hackers drained approximately $40 million worth of tokens from the GLP pool into an unknown wallet. In response, the protocol pau...
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