GAIN token plunges 90% after LayerZero mint exploit
Griffin AI’s GAIN token plunged 90% within 24 hours of its Binance Alpha launch after a hacker exploited a fake LayerZero peer contract to mint 5 billion unauthorized GAIN tokens. By bypassing the official Ethereum endpoint and supply cap on BNB Chain, the attacker created non-existent liquidity on PancakeSwap. Low liquidity triggered rapid sell-offs of 147.5 million GAIN via PancakeSwap and OTC trades, driving the price from $0.25 to $0.0273 and wiping out $36 million in market capitalisation.
Analysts estimate the exploiter bridged $3–4 million in proceeds through deBridge to Solana (SOL), Ethereum (ETH), Base and Arbitrum (ARB). Although user wallets were unaffected, the incident raised questions over contract security, multisig permissions and potential insider involvement.
Griffin AI has requested trading freezes, halting deposits and withdrawals on centralised exchanges and pausing its airdrop campaign. The team is now working with exchanges and security partners to contain the cross-chain DeFi exploit and recover value.
Bearish
The exploit and rapid price crash of the GAIN token is likely to have a bearish impact on market sentiment and trading activity. In the short term, the unauthorized mint and subsequent sell-off undermine confidence in token security and support levels. Traders may avoid GAIN token trading or demand higher risk premiums, leading to low liquidity and further price pressure. In the long term, ongoing investigations into contract security, multisig controls and potential insider involvement could delay value recovery and hinder re-listing on exchanges. While containment efforts and forensic analysis may restore some trust, GAIN token markets will likely remain subdued until clear remediation and audit outcomes are delivered.