The crypto software platform where developers can share their projects, Gitcoin, made headlines with an interesting mistake. The team accidentally sent their funds to an irretrievable contract address instead of conducting a regular transfer. Admitting their mistake, the team suffered a loss of $460,000 worth of Gitcoin (GTC) tokens. Project leader CoachJonathan explained what would be done if such a situation occurs again.
Major Mistake from the Gitcoin Team
Gitcoin project leader CoachJonathan clarified the incident on the governance forum on October 6th. The project leader stated that GTC token was designed for transferable commercial use, community-oriented initiatives, and marketing offers. The renowned figure explained that the transfer was redirected to a different contract instead of a multisig address, stating:
“This situation caused the funds to be stuck in the contract and unable to be recovered in any way.”
As a result of the incident, the team suffered a total loss of 521,440 GTC tokens. At the time of the incident, the token was trading at $0.90, indicating that the team lost nearly $461,000.
Following this transfer, the team contacted the core developers of Gitcoin. It was investigated whether the contract had a withdrawal function or could be updated, but it was confirmed that neither of these possibilities existed. Consequently, the funds were marked as lost.
Project Leader Reveals Their New Plan
After the incident, the team shared their plans to prevent such a mistake from happening again and to demonstrate a clearer stance in case of a similar event. CoachJonathan explained the situation as follows:
“Large token holders and multisig signers have a responsibility to be extra cautious about using funds that do not belong to them.”
Gitcoin is a popular platform known in the Web3 space for providing funding to projects. Project owners and developers can showcase their projects on this platform, while donors can support these initiatives.
The price of GTC token has increased by 1.6% in the last 24 hours and is currently trading at $0.89 at the time of writing. According to CoinGecko data, the token has decreased by 99% since reaching its all-time high of $89.62 in May 2021.
