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Gitcoin’s $450,000 Faux Pas: GTC Plummets on the News

by BSCN

October 9, 2023

chain

A token transfer mistake, made by the Gitcoin team, which led to the loss of around $450K, has seen its governance token spike downward.

Confirmed by a post made by lead developer, CoachJonathan, more than 520,000 GTC tokens have been lost forever, following their mistaken transfer to GTC token contract, rather than the intended multisig address.

At time of writing, and following a sharp decrease in price, the 521,440 GTC tokens are worth approximately $453,000, according to CoinMarketCap.

The tokens were originally earmarked for a merchandise, memes, and marketing (MMM) proposal, but are now effectively burnt. 

CoachJonathan advocated for both the creation of further safeguards “to ensure something like this never happens again” as well as greater accountability in the future.

GTC Plummets

GTC is Gitcoin’s official governance token and, as a result of the incident, has shed some 2.5% of its value over the last 24h. Combined with bearish market sentiment, this equates to a more than 15% decrease over the past week.

GTC price data. Source: CoinMarketCap

The snafu, which saw nearly half a million dollars worth of Gitcoin’s token lost, serves as a harsh reminder of the dangers of cryptocurrency and, in particular, self-custody.

“Large token holders and multisig signers have a responsibility to be extra diligent when it comes to handling funds that do not belong to them (myself included). Unfortunate as this incident was, I hope it can serve as (yet another) lesson for many of us.” reads CoachJonathan’s post.

Disclaimer

Disclaimer: The views expressed in this article do not necessarily represent the views of BSCNews. The information provided in this article is for educational and informational purposes only and should not be construed as investment advice. BSCNews assumes no responsibility for any investment decisions made based on the information provided in this article

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