An NFT to reward white hats – Nomad’s fun idea

A very meager reward – In early August, the Nomad Protocol was the subject of an attack. In total, more than $ 190 million was stolen from the protocol. Fortunately, some of the funds were returned from several dozen white hats. Now, the protocol teams are trying to trick the hackers into returning the funds in exchange for a NFT exclusive.

Nomadic hacking: 190 million stolen

Nomadic is a bridge protocol for sending funds from one blockchain to another. The transfer takes place in two main stages:

  • the user will deposit funds on the smart contract of channel A;
  • the channel B smart contract will automatically release the same amount and send it to the wallet entered by the user.

On August 2, the protocol Nomad was the target of a large-scale attack. Therefore, a hacker found a flaw in the protocol. This made it possible to withdraw more money than initially deposited. It was therefore possible to deposit 100 on channel A to withdraw 1,000 on channel B.

Quickly, dozens of internet users copied his transaction, gradually absorbing everything $ 190 million present on the protocol.

After studying the transactions, it was obvious that several dozen ethical hackers had also taken part in the robbery. Therefore, the Nomad developers have set up a fund recovery address. Thus, they were able recover the equivalent of $ 36 million in ETH and other ERC-20 tokens.

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An NFT to incentivize Nomad’s white hats

Obviously, the recovered amount is still far from the amount initially subtracted. However, the day after the attack, Nomad told the white hats that they could keep 10% of the stolen amount as a reward.

Now, the teams have come up with a new way to incentivize users to return funds. Thus, on 23 August, the Nomad teams announcement a partnership with Metagame to offer an exclusive NFT to white hats.

NFT offered by Nomad to white hats.

In practice, attackers who have returned at least 90% of the stolen funds can benefit from this NFT.

An interesting attempt that has not received the expected welcome from the community. In fact, many internet users have begun to mock the project in the comments.

Thereby, many have questioned the usefulness of such an NFT in a time of crisis. Many have criticized Nomad for wasting time doing NFT rather than solving the problem.

Subsequently, the Metagame teams quickly clarified the situation, claiming to be behind the idea.

“It’s a Metagame idea, developed by Metagame. We just offered it to Nomad. They have much more important things to focus on! “

Given the initial reactions, it is a safe bet that this new incentive will have little effect. From now on, Nomad teams will have to find an alternative to recover or compensate for the $ 130 million that was not returned.

At least, in this case, part of the funds could be recovered. Indeed, SudoRare’s NFT exchange protocol suffered a severe blow from the founders, just six hours after its launch. In this case, the victims have almost no hope of recovering their funds.

Hacks are unfortunate but not inevitable dangers. Play it safe and register now on the PrimeXBT platform (commercial link).

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