Hedera [HBAR] becomes the latest victim of network downtime
Hedera network users and developers experienced a rough time on Thursday (9 March) due to network downtime. This is the first time that the network has experienced such an event. Nonetheless, it joins the likes of the Solana network which has experienced numerous such incidents in the past including a recent event.
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Hedera developers initially reported that smart contract irregularities triggered the network disruption. The event rendered many users unable to access the network’s services.
After extensive investigations, developers found that the root cause was attackers trying to exploit Hedera’s smart contract service code. The dev team was forced to shut down network proxies on the mainnet as part of its precautionary measures aimed at protecting users.
<p lang=«en» dir=«ltr» xml:lang=«en»>Today, attackers exploited the Smart Contract Service code of the Hedera mainnet to transfer Hedera Token Service tokens held by victims’ accounts to their own account. (1/6)— Hedera (@hedera) March 10, 2023
Aside from users being unable to access the network, Hedera DApps and services were also affected. Developers paused the Hashport bridge which was the conduit that the attackers used to move stolen tokens. Disabling the Hashport bridge allowed the team to stop the exploit.
Network downtimes usually have a negative impact on investor sentiment. They can potentially trigger an erosion of the faith that investors have in the network.
It is rather difficult to gauge the impact of the network downtime on Hedera’s native cryptocurrency HBAR because it was already bearish before the incident.
HBAR’s weighted sentiment metric kicked off the week with some downside, confirming an
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