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South Korea-based cryptocurrency exchange Bithumb announced that it has added the HEMI token to its delisting watchlist. The decision reportedly comes after a security vulnerability was discovered in the smart contract used for token distribution.
According to a statement by Bithumb, a security vulnerability was discovered in the smart contract used by the organization responsible for operating the HEMI ecosystem to distribute initial reward claims. Due to this vulnerability, some tokens were withdrawn from the contract in an unusual manner, and assets were unauthorizedly liquidated.
The security incident led Bithumb to re-evaluate the trading status of the HEMI token on its platform. Following the incident, the exchange added the token to its delist watchlist and announced that it would closely monitor developments related to the project and token.
Being placed on the delist watchlist doesn’t mean HEMI has been definitively delisted from Bithumb. However, this status means the token is being reviewed to determine if it meets the exchange’s listing criteria, and trading support may be terminated in the future.
Cryptocurrency exchanges may re-evaluate listing status in situations such as projects experiencing security issues, critical vulnerabilities being discovered in smart contracts, or investors’ assets being put at risk. Smart contract-related security incidents, in particular, can pose significant risks to the security of user funds.
Bithumb’s subsequent assessments regarding HEMI will be crucial for the token’s future on the exchange. The project’s response to the security vulnerability, how losses were handled, and the measures taken to prevent similar incidents from recurring will be important in the review process.
Investors are expected to follow any new announcements from Bithumb regarding HEMI, which has been added to the delisted watchlist.
*This is not investment advice.
Source: cryptonews.net