EGLD price drops 6% as team starts investigating suspicious activity on Maiar DEX

The price of the EGLD token, which is the native token of Elrond Network is on the decline and has dropped by more than 6% today after an announcement that the Elrond team had started investing malicious activity on its main decentralized exchange (DEX), Maiar.

At the time of writing, EGLD was trading at $72.39, down 6.01% after dropping from a daily high of $77.48.

Malicious activity investigation

Elrond Founder and CEO, Beniamin Mincu, tweeted that his team was investigating “suspicious activity” on Maiar adding that his team will be providing the update “soon.”

Investigating a set of suspicious activities on the Maiar DEX.

We are here, all hands on deck.

Will update as soon as analysis is clear.

— Beniamin Mincu 🔥🌓 (@beniaminmincu) June 5, 2022

In a later tweet Mincu said:

“Identified the potential issue, and working on an emergency fix.”

Almost 7am here.

Team still focused on deck.

Identified the potential issue, and working on an emergency fix.

Will update again once fix is deployed.

P.S. Remarkable support from the Elrond community 🙌 https://t.co/98PpvlssGS

— Beniamin Mincu 🔥🌓 (@beniaminmincu) June 6, 2022

According to the reports, the Elrond Network went offline by a way of a “scheduled maintenance” with a message on its site noting that “operations will resume shortly.” However, the exchange has been offline for more than 7 hours.

Now, the rumors are spreading fast with some Elrond supporters saying that the network might have been compromised. 

Elrond blockchain has not gone down there has been an attempted exploit on the Dex. This was stopped. Do not spread fud

— PlanZ⚡️herotag @cryptotaptor (@BoomerRang54) June 6, 2022

Elrond has assured its users that they will be updating them once they fix their systems.

Following the incident, both EGLD and MEX, the native token of the Maiar DEX is also down with MEX failing to recover from its significant price drop where it lost almost 90% of its value late Sunday evening.

Maiar, launched late last year, had announced a $1.29 billion liquidity incentive program to improve the activities on the new exchange platform as well as push decentralized finance (DeFi) adoption beyond the crypto space into the mainstream.

At the time of the launch, the smart contracts installed on Elrond and the ones built for Maiar were advertised as having gone through a “rigorous auditing and formal verification.”