AI network Bittensor token drops 15% as possible hack leads to chain halt

Source: Crypto Briefing

The token associated with Bittensor, a decentralized artificial intelligence network, has fallen sharply amid reports of a possible security breach. The native token, TAO, dropped more than 15% in the past 24 hours, from $281 to $237, according to data from CoinGecko.

Bittensor co-founder Jacob Robert Steeves confirmed that the network has been temporarily suspended while developers investigate the situation. 

“Hey folks, we’re investigating, chain is currently firewalled, we’re prepping an update to push it into safe mode, but all transfers are now blocked as we’ve isolated the validators.” – @shibshib89

— Neural Bond Connery(τ, τ) (@ai_bond_connery) July 2, 2024

A community moderator, identified as “const,” reported that the team is “investigating what appears to have been an attack on a number of Bittensor wallets over the last 3 hours.” In response, the network has “fully halted transactions on chain” as a precautionary measure.

The Opentensor Foundation, the organization behind the Bittensor protocol, has yet to release an official statement regarding the incident.

Bittensor leverages blockchain technology to create a decentralized platform for the development, training, and exchange of AI models. The TAO token serves as an incentive for participants to contribute computational resources and data to the network’s AI training processes.

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Author: Diego Almada Lopez