Griffin AI Plummets 90% as Attacker Mints 5B GAIN Tokens Just 24 Hours After Launch

Another day, another DeFi disaster—Griffin AI's token collapses spectacularly after a massive exploit exposes critical vulnerabilities.

The Attack Unfolds

An unknown attacker exploited a minting function to create 5 billion GAIN tokens out of thin air—dumping them on the market and vaporizing 90% of the project's value within hours. The attack hit just one day after Griffin AI's highly anticipated launch, catching both developers and investors completely off guard.

Security Failures Exposed

The exploit bypassed basic smart contract safeguards that should have prevented unauthorized minting. Security audits either missed the critical vulnerability or weren't conducted thoroughly enough—raising questions about due diligence in the rush to launch.

Market Impact

Early investors watched helplessly as GAIN tokens nosedived from launch price to near-zero. The incident reinforces Wall Street's favorite criticism of crypto: that even 'AI-enhanced' projects can't outsmart basic greed. Meanwhile, the attacker walked away with millions while retail holders absorbed the losses.

DeFi's recurring nightmare—brilliant technology undermined by elementary security oversights—continues unchecked. Until projects prioritize robust code over hype-driven launches, these 90% crashes will remain a feature rather than a bug of the ecosystem.

Market fallout post hack

The incident erased nearly $36 million in market capitalization, sending $GAIN from its launch highs NEAR $0.25 to $0.0273 at press time, a 87% plunge. Market cap now stands around $6.4 million. Trading volume surged to nearly $100 million in 24 hours, up 133% from the day before, as opportunistic traders attempted to play the volatility.

Griffin AI emphasized that user wallets were not directly compromised. The project said further updates will follow as it investigates and works with partners to address the incident.

Questions over Griffin AI security

The exploit came less than 24 hours after Griffin AI launched its token on Binance Alpha, KuCoin, HTX, MEXC, and Gate.io. The GAIN contract had been audited by Hacken pre-launch, but analysts suggest the flaw was introduced post-deployment through misconfigured multisig permissions or an insider compromise.

The sudden crash has fueled debate on X over whether the exploit was an external hack or a potential inside job. For now, the attacker remains in control of the excess minted supply, though dumping paused after the initial sell-off.