Griffin AI Hack Shakes the Market: $GAIN Token Crashes 90%, Binance Steps In!

Griffin AI Hack Triggers $GAIN Token Crash: Can Binance Restore Investor Confidence?

The cryptocurrency world was rocked today as Griffin AI’s native token, $GAIN, suffered a staggering 90% plunge in value following a sophisticated hack. The token, which had launched just a day earlier on September 24, initially saw strong momentum and a promising price point. But by the next day, the market was reeling from a sudden flood of newly minted tokens, sparking panic selling and widespread confusion among investors.

What Went Wrong: Anatomy of the Griffin AI Hack

According to blockchain data reviewed by Lookonchain, the breach stemmed from a cleverly executed attack on the Binance Smart Chain (BNB Chain). The perpetrators reportedly deployed a fraudulent Ethereum contract that was designed to appear legitimate. With this in place, they were able to mint an eye-watering 5 billion $GAIN tokens out of thin air. This influx of counterfeit assets immediately disrupted the token’s liquidity, destabilizing the market.

Source: X

Once the fake tokens had been created, the attackers quickly offloaded them onto the market. The large-scale sell-off caused prices to collapse within hours, wiping out much of the initial investor confidence and creating ripple effects across trading platforms. It was a meticulously planned strike that exposed vulnerabilities in the token’s contract structure and left traders grappling with heavy losses.

Binance Responds: Immediate Damage Control

In the wake of the incident, Binance moved swiftly to contain the fallout. The exchange announced via its official X account that it had removed compromised on-chain liquidity pools and temporarily suspended all trading, deposits, and withdrawals of $GAIN on the BNB Chain. These measures were designed to prevent further exploitation and protect retail investors from additional financial harm.

Source: X

Additionally, Binance paused its promotional Griffin AI airdrop campaign, citing the need to halt token distribution until the situation is fully assessed. The platform reassured users that the Ethereum-based $GAIN token remains unaffected by the breach, which was isolated to the BNB Chain deployment.

Market Reaction: Why $GAIN Fell 90%

The impact of the Griffin AI hack was immediate and dramatic. After launching around $0.163, $GAIN plummeted to $0.03254 within a single trading session, reflecting a 90% devaluation. Market observers attribute the collapse to a confluence of factors:

Panic Selling: The moment news of the hack broke, token holders rushed to liquidate their positions, driving prices downward.

Extraordinary Volume: Trading volumes surged by more than 12,663,932% — an astronomical figure fueled by panic sales and speculative activity.

Technical Indicators: Analysis on TradingView shows the Relative Strength Index (RSI) at 66.84, suggesting the token is overbought despite the collapse. Meanwhile, the Moving Average Convergence Divergence (MACD) indicator remains in positive territory, hinting that selling pressure may be easing and a short-term rebound could follow.

Key Updates for Investors

As investigations continue, Griffin AI and Binance have issued several crucial updates for investors:

Ongoing Investigation: Teams are working to trace the breach’s origin and strengthen security against future attacks.

Ethereum $GAIN Safe: The Ethereum-based version of the token has not been compromised, reassuring holders of that variant.

Airdrop Suspended: Binance has temporarily paused the Griffin AI airdrop event, freezing claims until further notice.

Short- and Long-Term Outlook for $GAIN

The road ahead for Griffin AI’s $GAIN token is uncertain. Analysts predict modest short-term price stabilization in the $0.03000 to $0.03500 range as the market digests the fallout. Mid-term projections are less optimistic, with expectations that the token may hover between $0.025 and $0.030 until security concerns are resolved and investor trust begins to rebuild.

Looking long-term, however, some analysts believe recovery remains possible. If the Griffin AI team can successfully patch vulnerabilities, implement stronger safeguards, and restore confidence, $GAIN could potentially reclaim significant value. In a best-case scenario, bullish sentiment could even push the token back toward the $1 mark, but such an outcome hinges heavily on investor trust returning — something that will take time and transparency to achieve.

Investor Caution: Proceed Carefully

For now, investors are urged to exercise extreme caution. While Binance’s intervention has helped limit immediate damage, the incident has highlighted the risks inherent in new and relatively untested tokens. Market experts emphasize the importance of doing thorough research before investing and recommend waiting for further clarity from the Griffin AI development team before making major portfolio decisions.

Conclusion: Reality Check for Griffin AI

The Griffin AI hack has served as a stark reminder of the vulnerabilities still present in the cryptocurrency sector. A 90% price crash overnight underscores just how quickly fortunes can reverse when technical flaws are exploited. While Binance has acted decisively to protect users and mitigate damage, much depends on whether Griffin AI can rebuild credibility in the wake of this crisis.

For now, the project is real — not a scam — but its credibility has been deeply shaken. Investors face a critical juncture: whether to hold on in hopes of recovery or cut losses and move on. One thing is certain: this event will become a case study in the importance of security and transparency in crypto markets.

Writer @Erlin

Erlin is an experienced crypto writer who loves to explore the intersection of blockchain technology and financial markets. She regularly provides insights into the latest trends and innovations in the digital currency space.

 

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