- Gnosis Pay suffered a serious security breach after attackers exploited a vulnerability in its Delay Module smart contract.
- The triangle pattern is leading the medium to long term sideways trend in Gnosis Coins.
- Martin Koppelmann, co-founder of Gnosis, indicated confidence that most of the damage would be contained and pledged to fully compensate affected users.
last Exploiting decentralized finance It appeared again on Monday, June 1st, targeting the Gnosis Propulsion Zodiac Delay Module. The actual amount of attrition or loss of funds has not yet been revealed, but Gnosis co-founder and CEO Martin Kopelman said Gnosis will fully compensate affected individuals. Following the security breach, Gnosis Pay’s native ecosystem token — Gnosis (GNO) — fell nearly 7% to currently trade at $107.25.
Gnosis Pay is exploited when attackers bypass smart contract security
Gnosis Pay, the decentralized payment network built directly on Gnosis Chain, suffered a serious security breach on Monday. Attackers exploited a vulnerability in the smart contract “Delay Module”, sending an emergency notification to all users to protect their assets.
Martin Kopelmann issued an urgent warning to users, including a call to withdraw all their remaining balances, including EURe and GNO tokens. Blockchain security company PeckShield It also verified ongoing exploitation and emphasized the need for users to assess their immediate wallet exposure.
However, in a follow-up tweet, Kopelman stated “Most users will not be able to do this, but we are actively working to contain the damage,” he added. However, he also assured affected users that “we believe we are able to contain the majority of this issue, and in any case, we will ensure that all users are made whole.”
The technical exploit directly compromises the internal architecture of Gnosis Pay, and specifically targets the delay module. This module is designed to support the concept of self-custodial, in addition to traditional retail spending, and imposes a three-minute time delay for cardless transactions to avoid double spending as funds move through the Visa payment network. Attackers bypassed the core mechanism of this module to drain funds.
This incident comes after a very stormy week for the Gnosis Safe ecosystem. A separate vulnerability in the SquidRouterModule external malware took nearly $3.2 million from 86 Gnosis Safe wallets on both. Ethereum And basic networks only six days ago.
The previous hack was based on third-party code, while the current attack directly targets Gnosis Pay’s native functionality. The team is trying hard to identify the defect.
Following this exploit, GNO experienced significant volatility as its price initially rose to $132.1, before bouncing back to its current trading value of $107.4, recording an intraday loss of 7%. As a result, the market value of the asset fell to US$287.4 million, and the heavy selling drove the 24-hour trading volume up by 1043% to US$18.8 million.
Price volatility is limited to this triangle
Since last month, gnosis Gino-5.92% The coin has seen extreme fluctuations in its price, with the asset temporarily rising to a high of $197.43 in early May, and has now fallen to the $107 region. A deeper analysis of the daily chart shows that this pullback is part of a broader consolidation trend led by a symmetrical triangle pattern.
This pattern setup follows two converging trend lines of dynamic resistance and support for traders until the price builds enough momentum to provide a decisive breakout. With the current bearish momentum, GNO price is poised to decline approximately 12% and retest the triangle support at $96.59.
Overall, the support provided buyers with a strong cushion for the price to bounce back higher. If this is true, the coin price could bounce back to the next important resistance levels at $113, $137, and $160.
However, a slight decline in the slope of the 100- and 200-day EMAs indicates a broader sideways trend of bearish sentiment among market participants. Therefore, the Gnosis coin price also carries the risk of a bearish collapse, which could extend its correction to $92, followed by $76.
