Virtuals Protocol Faces Backlash After Security Flaw and Price Drop

Virtuals Protocol (VIRTUAL), a leading AI crypto token, faced a sharp decline after a critical security vulnerability was publicly disclosed by blockchain researcher known as "jinu".

Jinu revealed that his private warnings to the Virtuals team were ignored, prompting him to expose the issue on X. The vulnerability allowed attackers to create Uniswap V2 token pairs ahead of Virtuals, potentially disrupting the platform’s token launches.

The team initially dismissed the report, closing communication channels created for the disclosure. Another expert, “33Audits”, confirmed similar experiences.

Following public pressure, the Virtuals team quickly patched the issue, releasing updated code and a new contract address.

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Despite the fix, the incident caused VIRTUAL’s price to drop 7.19% in 24 hours, falling to $4.10 before recovering to $4.29.

This setback comes during a broader AI crypto boom, with the sector surpassing a $10 billion market cap. While the issue has been resolved, the team’s handling of the situation has raised concerns about transparency and security, potentially undermining investor trust.

Alexander Zdravkov

Alexander has been working in the crypto industry for three years, during which time he has established himself through his active participation in monitoring market dynamics and technological innovations. His interest in cryptocurrencies and new technologies is not just a professional commitment, but a deep personal passion. He follows the news in the sector daily, analyzes trends, and is excited about every new step in the development of blockchain solutions. His enthusiasm drives him to continuously learn and share knowledge, as he sees the future in digital finance and its role in global transformation.