Cryptocurrency intelligence firm Messari revealed that the eighth largest cryptocurrency protocol by reported market capitalization, Stellar [XLM] suffered a significant inflation bug in April 2017. The new research from the Messari report shows Stellar was exploited to create 2.25 billion XLM [worth about $10 million at the time], which were later burned. The firm published the report on March 27 on its blog.
The firm reveals,
According to the report, the illeagaly developed XLM that was almost equivalent to a quarter of the circulating supply was shifted to exchanges and sold during the first half of 2017. To avoid the dilution of the value of the tokens, an equivalent quantity of Stellar [XLM] was burned intentionally to maintain the intended supply quantity.
The firm claims that no media has reported about the bug and its exploitation and the consequent burn before Messari. The firm’s research report highlights that the involved addresses and related records are accessible any more on Stellar Expert or other block researchers but can be found using the Horizon Application Programming Interface.
According to CoinMarketFeed the cryptocurrency is the eighth largest cryptocurrency by market cap with a total market value of over two billion. The firm hasn’t masked the issue. A representative of Stellar is quoted in the report stating that the bug and its exploitation were mentioned twice in the protocol’s release notes.
The statement accepts the importance of the issue and reads,
By the end of 2019, Stellar has committed to a full accounting of all Stellar Development Foundation [XLM] by the end of the 2019 that describes more information about the bug. The firm even highlighted Stellar’s February released 2019 roadmap.
At the time of press Stellar was seen trading at $0.107870 with market capitalization $2,075,223,951 at eighth rank according to CoinMarketFeed. There was a change of 1.46% in the last 24 hour period.