Telcoin’s Price Drops by 65% Following $1.2M Hack on Polygon Wallet, Yet Will It Be Able to Rebound?

Telcoin, a company known for its mobile-based financial solutions, recently faced a major setback when a significant vulnerability was discovered in its wallet on the Polygon blockchain. This vulnerability led to a 40% decrease in the value of the Telcoin (TEL) token, resulting in over $1.2 million being stolen from user accounts.

The exploit took advantage of un-initialized proxy contracts and initialized them with vulnerable implementations to transfer Telcoins. This particular contract was not included in the audit conducted by CertiK, a security firm. The incident was alarming and caused concern among Telcoin users.

However, Telcoin responded swiftly to the situation, prioritizing the safety of its users. The company promptly paused its mobile application to prevent further unauthorized transactions. Security experts from CertiK were brought in to assess the situation and determined that the impact of the exploit was around $1.25 million. Their analysis revealed that the exploit involved the activation of un-initialized proxy contracts with incorrect configurations to move Telcoins.

Telcoin took the necessary steps to address the issue and provided a clear explanation of the situation. They identified that the problem lay in the wallet’s interaction with the Polygon blockchain. It is important to note that most affected accounts had not previously made transactions through Telcoin’s app. Telcoin reassured its users that their private keys, backend systems, and personal data remained secure.

After conducting a thorough investigation, Telcoin concluded that the main issue was not with the code of its wallet, but rather with how it interacted with the Polygon blockchain. To rectify the situation, Telcoin committed to resetting all impacted wallets to their previous balances. This action demonstrates Telcoin’s dedication to its users and its determination to tackle challenges head-on.

Despite the incident, there is positive news for Telcoin. The value of the TEL coin has recovered by 21% within 24 hours, reaching $0.00149, according to Coingecko. This market response reflects the resilience and trust in Telcoin’s proactive approach to user safety.

This event serves as a reminder of the importance of continuous vigilance and robust security measures in the ever-evolving world of cryptocurrencies. Telcoin’s swift response and commitment to user safety during this challenging time highlight the company’s dedication to maintaining the trust of its users.