Another Token Plunges By Over 80% from an All-Time High After a Major Hack

The token of blockchain identity project, Humanity Protocol, slumped more than 80% after hackers allegedly compromised private keys linked to the project’s foundation triggering a wave of token sales and wiping out hundreds of millions of dollars in market value.

Humanity Protocol’s H token fell as much as 88% to around $0.07 reversing gains made during a recent rally that had pushed the token to record highs last week. The token was trading near $0.09 after the breach became public, according to market data.

The sell-off followed reports from blockchain investigators that multiple wallets tied to the Humanity ecosystem had been drained after attackers gained access to private keys associated with a member of the Humanity Foundation. Early estimates placed losses above $30 million with stolen tokens rapidly sold or swapped into ether, intensifying downward pressure on the market.

On-chain analyst, Specter, said more than 17 wallets connected to Humanity Protocol were affected. The full extent of the breach remains under investigation, and the project had not publicly disclosed the exact number of compromised wallets at the time of writing.

The incident marks a dramatic reversal for Humanity Protocol, one of the year’s best-performing crypto projects. The protocol, which uses biometric verification and zero-knowledge proofs to establish digital identity, had gained investor attention amid growing demand for technologies that distinguish human users from AI-generated accounts and bots.

The token had surged more than 160% in recent weeks supported by a newly launched staking program and institutional interest, including a reported $42 million purchase by digital asset custodian, Hex Trust-linked entities.

The hack adds to a series of challenges for the project. Humanity Protocol has previously faced criticism over token distribution and questions surrounding the authenticity of its user base, issues that had already contributed to volatility in the token’s price since its launch.

The breach is the latest reminder of the risks posed by compromised private keys in the cryptocurrency sector where a single security failure can rapidly erase investor confidence and trigger severe market losses.

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