Harmony's ONE token fell to an all-time low of $0.0005735 during early Asian trading Wednesday after an exploit minted roughly 4 billion tokens without authorization. The minted amount equals about 26% of ONE's total supply, and the network is now coordinating with exchanges to freeze funds while it develops a patch and evaluates rollback options.
The Mint and the Move to Exchanges
On-chain analyst Juiceberg reported that the supply was minted through empty blocks. Around 2.8 billion of those tokens moved quickly to exchanges, according to the analysis. Harmony later named four wallet addresses tied to the incident and asked all exchanges to block and freeze funds traced to them.
The speed of the transfer suggests the attacker was looking to offload the tokens before the network could react. Whether any of those funds have been converted or are still sitting in exchange wallets remains unclear.
Market Reaction
The token traded near $0.00087 at press time, down about 29% on the day, after touching its record low earlier in the session. The drop reflects the sudden increase in supply and the uncertainty around the network's response. Trading volume spiked as holders rushed to assess the damage.
For a token that had already been under pressure, the unauthorized mint added a fresh wave of selling. The all-time low came just hours after the exploit was detected, and the price has not recovered much since.
A Second Major Breach
This event marks the network's second major security breach. In 2022, its Horizon Bridge lost roughly $99.6 million in an attack linked to North Korea's Lazarus Group. That incident led to a lengthy recovery process and raised questions about the network's security posture.
Now, with a new exploit on its hands, Harmony faces similar questions again. The current incident's root cause has not been disclosed yet, leaving users and exchanges in the dark about how the mint was possible.
Patch and Rollback Evaluation
Harmony said it is coordinating with exchanges to freeze funds while it develops a patch and evaluates rollback options. The company has not said when the patch will be ready or whether a rollback is feasible. A rollback would require the network to reverse the minted blocks, a move that carries its own risks.
Exchanges that received the flagged tokens are now in a holding pattern. Some have already paused deposits and withdrawals for ONE, according to public announcements, though Harmony's statement did not name specific platforms.
The root cause remains undisclosed, and the network's next steps—whether a rollback is possible and how much of the minted supply can be recovered—are still open questions. Harmony has not provided a timeline for its patch or for the freeze coordination.
