MANTRA Token Drops 19% Following Exploit: Network Remains Down as it Hits Record Low

The MANTRA token fell 18.5% to a record low of $0.004126 following a security breach on the network, while the network’s validators remained offline.

A security incident at MANTRA, which focuses on bringing traditional financial assets like funds and bonds onto the blockchain, simultaneously brought a sharp move in the token price and a network outage to the forefront. The team reported that they have identified the vulnerability and are preparing an update to get the network back up and running.

According to CoinGecko data, the token dropped from $0.005060 to $0.004126 around 23:10 UTC, hitting an all-time low. Although the price later recovered to approximately $0.0044, the 24-hour loss remained around 10%. Meanwhile, trading volume surged 600% to $24 million.

MANTRA network remains down following exploit

The last recorded block of the MANTRA network was produced at 23:13 UTC, just minutes after the token plunged to its record low. The project announced about half an hour later that it had halted the chain as a precaution. While transactions and network endpoints were frozen, deposits and withdrawals on affected exchanges were also temporarily suspended.

In a subsequent update, the team confirmed that the attacker exploited an upstream dependency vulnerability in a software component developed outside the network and used by MANTRA. MANTRA stated that preparations for a patched version are underway and testing continues for a secure release.

Validators operating the MANTRA network are still offline. The restart of the blockchain requires coordination among the operators who validate transactions. The team is also working with exchanges while monitoring fund movements.

While a direct link between the price action and the security incident has not yet been clarified, the total impact of the event has not been disclosed. The outage continues to affect the network’s public endpoints, validators, and bridge operations that provide connectivity with other blockchains.