SuperRare NFT Platform Faces $730K Loss Due to RARE Token Exploit

On July 28, the SuperRare NFT platform encountered a serious vulnerability that allowed an attacker to exploit its staking contract, resulting in an estimated loss of $730,000 worth of RARE tokens.

Key Takeaways

A significant bug in SuperRare's staking contract was exploited, leading to a theft of $730,000 in RARE tokens.
The specific contract targeted was the RareStakingV1, which had a critical coding flaw.
The attack affected only the staking contract; the NFT marketplace and RARE token itself remained secure.
Following the incident, the value of the RARE token dipped by 6% but has seen a 13% increase over the past month.
Currently, RARE has a market capitalization of $48.01 million, with recent sales activity on the SuperRare platform significantly declining.

SuperRare NFT platform loses $730K in RARE token exploit

The Exploit Unfolds

The theft was executed through a critical vulnerability identified in the RareStakingV1 staking contract on the SuperRare platform. A recent analysis revealed that a programming error allowed the attackers to bypass the necessary verifications and take control of the contract. Once the attackers had access, they swiftly transferred the stolen RARE tokens to their own wallets.

Despite the alarming nature of the hack, blockchain security experts highlighted that the exploitation was limited to the staking contract alone, leaving the overall NFT marketplace and the RARE token unharmed.

Market Reactions

In response to the hack, the price of the RARE token experienced a decrease, sliding from a daily peak of $0.0617 to $0.05815—a dip of 6%. However, it is worth noting that the token remains above its weekly lows and has increased by 13% compared to the previous month, indicating a degree of resilience in its value.

As of now, RARE boasts a market capitalization of approximately $48.01 million. The SuperRare marketplace has recorded a total volume of $249.71 million over its lifetime, engaging 6,120 unique traders. However, recent trends show that sales volumes in the NFT space have dropped significantly. Over the last 30 days, SuperRare reported only $2,120 in sales, with individual sales averaging under $450.

In summary, while the SuperRare platform has faced a serious challenge with this exploit, the overall stability of the RARE token and its marketplace indicates a potential for recovery and growth moving forward.