Update (12/10): amount of coins created updated, amount of coins sold updated, solutions to the problem.
DACH Coin has been hit by a bug which allowed a hacker to create 12 million coins out of thin air. 2.9 Million coins have been sold on exchanges already, causing a big drop in value. DACH Coin Limited, the U.K. registered company behind the project, has halted all trades on CryptoBridge and Crex24 to come with a solution.
An user nicknamed ‘full house queen’ made a new account on CryptoBridge this Saturday, and immediately started selling the newly obtained coins. This caused the price of DACH to drop to 1 satoshi. That’s the lowest possible value measured in bitcoins. Currently DACH is 35 satoshi, down from approximately 120 sat just 24 hours ago.
DACH is considering to allow the 3 million sold coins to exist within the community, or to blacklist exploited wallets and consider all coins on exchanges lost. Currently the team advises investors not to buy DACH on any exchange, because it might be lost forever depending on the decision the team is going to make.
According to the DACH developers their project was not the only one hit by the malicious exploit. They believe other coins forked from PIVX have also been hit, including DL, AIRIN and USERV. These coins are also down at least 70% on CryptoBridge.
“It was an attack that somehow bypassed the checks and didn’t get rejected. So, a person who has 3.000 coins, and sends 7.000.000 coins, but the network says it’s okay.“, one of the DACH chain developers wrote on Discord.
DACH is looking for a solution that’s in the best interest of their project and its community. One of the community managers stated that they will bring more clarity soon:
“There are different options and we will try to choose the most honest solution for our community. We are aware that it is impossible and hard to find a solution where everyone is satisfied. […] Like mentioned before, we are DACH and here to stay.”
DACH Coin Limited is the U.K. registered company behind DACH. This masternode powered coin can be used on DACHex, a crypto tracker website. On top of that the team is working on a DEX, on which DACH and BTC would be the two main trading pairs. The DACH Coin network currently has 1113 masternodes.
The current coin supply is 20.2 million DACH, while the network has created 146898 blocks. That would make the average coin production per block 137.5 DACH. There was a 1 million DACH pre-mine, before the masternode projects started. But even without that one million, the average coin production per block would be 130.7 DACH.
The Reward Distribution changes during the project development. There’s always a 90/10 split between masternode and staking rewards, but the total amount of rewards changes per phase. It started at 35 per block, followed by 50, 60, 70 and currently 40. From here on the rewards will go down to 30 and finally 20, with a 50% split between staking and masternodes.
Never has the block rewards been as high as 130 DACH, which indicates the seriousness of the problem. Those 12 million ‘fake’ coins are messing up the projects ecosystem.
Also published on Medium.