Cosmos Detects Major System Weak Point

Cosmos is now working to ensure that its system will not share the same fate as the BNB chain that drained $100 million worth of tokens in a hacker attack last week.

On October 13, Ethan Buchman, co-founder of Cosmos’ Inter-Blockchain Communications (IBC) ecosystem, revealed a major security weakness point That affects all Cosmos chains that use IBC, regardless of which version of IBC you’re using.

Inter-Blockchain Communication protocol allows users to seamlessly switch from one Cosmos chain to another.

42-IBC Connected Blockchains are at risk

Currently, there are 42 IBC-enabled blockchains. Among these are Cosmos Hub, Osmosis, Cronos, and Evmos.

OKX Chain, Luna Classic, and Thorchain are some of the major blockchains that have integrated IBC before. Fortunately for them, the function is already deactivated or not fully enabled from the start.

Buchman’s disclosure during the Cosmos Hub forum is not to be taken lightly, especially as all of the affected networks combine to bring a total market capitalization of $8.18 billion.

Meanwhile, Cosmos co-founder said that the issue was addressed through a patch that will be rolled out to all blockchains that are currently at risk.

Developers and auditors were given special access to the patch before the security threat was announced.

One-third of the blockchain voting power must be patched in order to be safe from the mentioned vulnerability.

ATOM’s price is a hit

News of the potential threat has weighed on ATOM, Cosmos’ cryptocurrency, as the asset suffers from a drop in prices.

At the time of publication, according to tracking from KoenigkuATOM is trading at $11.58 and is down 4.4% in the last 24 hours. Its price correction has further increased its decline over the past seven days as the cryptocurrency is at -10%.

Although it is expected to jump all the way to $13.31 over the next five days, the overall sentiment towards the asset remains bearish according to Coincodex.

In fact, the online crypto data provider said that 25 of the 28 indicators for ATOM technical analysis gave bearish signals.

As for the Fear and Greed Index, the cryptocurrency scored a score of 24 which translates to extreme fear. Moreover, Coincodex said now is a bad time to buy the asset.

Understandably, the cryptocurrency reacted negatively to the development announced by Cosmos.

It is now a waiting game to see if the aforementioned solution to the discovered threat will calm the fears and negativity that pushed ATOM to another bearish rally.

ATOM total market cap at $3.31 billion on the daily chart | Featured image from Zipmex, Chart:

Disclaimer: The analysis represents the author's personal views and should not be construed as investment advice.

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