In recent times, DeFi has not seen significant hacking events; however, a recent incident involving the GMX platform has rung alarm bells in the crypto community. Due to suspicious on-chain activities, experts have asserted that the GMX platform was compromised. As a result, the price of GMX Coin plummeted by 20%, while Bitcoin 
$75,013 maintained its value at $109,548.
Significant Security Breach
The accusations led by BWE indicate a hefty $40 million withdrawal from the GMX protocol. The dissemination of this news rapidly triggered a 20% decline in the GMX Coin’s price. Earlier valued at approximately $14.5, the price dipped below $12, and as of now, it resides at around $12.5. If this selling trend continues, the market could experience further losses, potentially testing the support level of $9.7, which was reached during a price adjustment in April.
Unfolding Consequences
The GMX team has yet to release an official statement, and roughly 40 minutes ago, the stolen assets began conversion into DAI. Astonishingly, 15 minutes before the hacking activity, GMX’s official account had posted content highlighting the protocol’s performance metrics.
Dominating the DeFi scene in 2021, the perpetual platform GMX thrived on the hype due to limited alternatives. The aftermath of this hacking incident remains to be witnessed. There’s uncertainty about whether a compensation program will be initiated for the $40 million loss, although the protocol boasts a 7-day fee revenue of $1 million. To date, GMX has generated $435 million in fee revenue with a total locked value of $444 million in the protocol.
