May 29, 2024
Gitcoin's Transfer Error Results in $460K Sent to Unrecoverable Address
Latest Cryptocurrency News

Gitcoin’s Transfer Error Results in $460K Sent to Unrecoverable Address

Crypto developer platform Gitcoin has confirmed the loss of approximately $460,000 worth of Gitcoin (GTC) tokens after mistakenly sending them to an unrecoverable contract address. The incident was reported by project lead CoachJonathan on the Gitcoin governance forum on October 6. CoachJonathan explained that the intended transfer of GTC tokens from the treasury was meant for merchandise, memes, and marketing budget proposal but was accidentally directed to a GTC token contract address.

“This has rendered the funds stuck in the contract, with no way of recovering them,” CoachJonathan stated. A total of 521,440 GTC tokens were lost due to this error, with GTC tokens trading at just below $0.90 each at the time, resulting in an estimated loss of $461,000.

In response to this unfortunate event, Gitcoin’s team is taking steps to prevent similar incidents in the future and establish clearer accountability in case of any future mishaps. CoachJonathan emphasized the importance of extra diligence for large token holders and multisignature signers when dealing with funds that do not belong to them.

Gitcoin researcher Umar Khan suggested that the DAO (Decentralized Autonomous Organization) could consider the lost tokens as a reduction in GTC supply rather than a loss of treasury funds.

The price of GTC tokens has seen a 1.1% decrease over the past 24 hours, trading at $0.889 at the time of the report. Furthermore, the token has experienced a significant decline of 99% since reaching its all-time high of $89.62 in May 2021. Observers have pointed out that incidents like this underscore the challenges in user experience within the cryptocurrency space. Gitcoin functions as a platform that facilitates funding for Web3 developers working on open-source projects, involving project owners, developers, and donors in its ecosystem.

Image by pch.vector on Freepik

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