MANTRA Chain Halts Network After Attack Attempt, Token Price Drops

MANTRA Chain, an EVM-compatible Layer 1 blockchain, has temporarily halted its network after detecting an attempted attack. Subsequently, the team froze transactions and other network operations as it continues to investigate possible issues. As noted by the platform, the network will remain paused until the issue is fixed and the team confirms that it is safe to resume operations.

Notably, the move has raised concerns among investors, significantly impacting the MANTRA token. The token price has seen a notable price drop, declining by nearly 10%. A surprising surge in the 24-hour trading volume also highlights the increasing selling activity driven by the network halt.

MANTRA Chain suspension puts investors on alert

MANTRA Chain has reportedly detected a security incident, following which the blockchain temporarily stopped its operations. The network has put transactions and asset transfers on hold. The platform has also paused validators, public endpoints, bridges, and managed relays as the investigation is going on. The company’s security alert read,

“MANTRA Chain Mainnet remains halted following the security incident reported earlier today. Transactions, transfers and staking operations are unavailable while the network is paused. User funds are unaffected by the halt itself, and a full network state snapshot was taken before the restart process began.”

However, the team hasn’t revealed the original cause of the security incident. The team addressed the latest network halt as a precautionary move. The platform has also not confirmed whether the incident has resulted in any crypto losses.

It is worth noting that as part of MANTRA Chain’s precautionary measure, the network has blocked validators from processing new blocks. Users will not be allowed to complete transactions or move assets. The platform has also halted bridge operations and other network services until the issue is resolved.

MANTRA Chain has also informed exchanges and other partnering companies about the situation. Users are urged to stay calm and cautious. The team has also warned users to be careful about scammers who may offer fake recovery services.

MANTRA price drops as investors remain cautious

Following MANTRA Chain’s network halt, the MANTRA token has come under intense pressure. Immediately after the incident, the token fell by more than 10%, sparking caution. Currently trading at $0.0047, MANTRA is down by about 5% in a day and 3% in a week. On a monthly basis, the token has seen a more severe crash, falling by more than 26%.

There has also been a notable rise in trading activity, with the volume surging by nearly 550% and hitting $34.5 million. This suggests that investors are offloading their assets amid market uncertainty. At the same time, some traders are also capitalizing on the current market correction, utilizing the buy-the-dip opportunity.

Upbit, Bithumb suspend OM deposits and withdrawals

The effects of the MANTRA Chain network halt have had an impact on the South Korean crypto market. Notable exchanges like Upbit and Bithumb have suspended MANTRA deposits and withdrawals after the incident. The move comes as the network has already informed these exchanges about the issue.

However, the platforms still allow spot trading. This means that users may be able to buy or sell MANTRA, but they cannot deposit or withdraw the token. This could lead to lower liquidity and increased price volatility as the network remains halted.