NES tokens experienced a significant drop in value following suspicious token activity and sharp sell-offs detected on the network. On-chain observers suggested that one wallet had mined approximately $55 million worth of NES and begun selling the tokens on decentralized exchanges. This selling pressure led to a price drop of up to 40% for NES.
According to the shared data, the address in question still holds approximately $18 million worth of NES. Therefore, it is suggested that the selling pressure in the market may continue.
Prior to the incident, it was reported that approximately $12.35 million worth of the 62.9 million NES tokens were bridged to the Ethereum mainnet in the morning hours (Turkish time). In the evening, it was claimed that the liquidity was withdrawn and the tokens were sold on the market. However, the data regarding the $55 million token production and the transfer of 62.9 million NES have not yet been independently verified.
The Nesa team confirmed in a statement that they had detected malicious behavior exploiting a vulnerability in the layer-1 network originating from Cosmos EVM. The team’s statement included the following:
“We have identified malicious activity exploiting a Cosmos EVM vulnerability on the NESA Layer-1 network. We are working to contain the impact. We responded quickly. We will restore services after implementing a software fix and additional measures to ensure the network operates securely.”
Nesa also stated that all cryptocurrency exchanges have been informed and that deposit operations will be reopened once the necessary work is completed.
*This is not investment advice.
