• An attacker exploited a concurrency bug and created 2.25 billion XLM.
  • In a statement to Messari, Stellar said that they had mentioned the bug twice in their release notes where they made it clear that the bug was exploited.

As per Messari Research, Stellar suffered an inflation bug in 2017 which created over 2 billion XLM. Stellar has since patched this with an equivalent token burn. While researching the supply details of the top 50 crypto assets, they discovered:

  • In 2017, an attacker exploited a concurrency bug and created 2.25 billion XLM worth approximately $10 million at the time. 
  • This inflation represented nearly 25% of the circulating supply in April 2017.
  • The Stellar Development Foundation decided to burn an equivalent amount of XLM from its community reserve to offset the illicit inflation. 
  • The affected addresses and related records of the bug are no longer accessible on Stellar Expert or other block explorers.
  • The XLM tokens that were created was moved to exchanges and probably sold during the first half of 2017.

Stellar representatives shared the following statement with Messari:
 
"In April 2017, Stellar was an emerging open-source project with a small but dedicated developer community. Announcing the bug in our release notes, therefore, made total sense—that’s how you reach those users. We mentioned it twice, in fact, in the notes, and we were very clear the bug had been exploited. From there, we took the additional step of burning Lumens to “true up" the supply, so that current $XLM owners wouldn’t be diluted and our projected total supply would remain accurate. We recognize that Stellar has since become significant financial software, and our disclosure standards have grown to reflect that reality. There’s been no notable bug since, and if there were we would disclose it in full detail as soon as it was patched. As we announced last month in our 2019 Roadmap we have already committed to a full accounting of all of SDF’s Lumens by the end of the year, and more details around this old bug were going to be (and still will be) part of that.”

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Cryptos feed

Latest Crypto News & Analysis

Editors’ Picks

Bitcoin Price Prediction: BTC/USD bulls try to take back control after a bearish Monday

$9,702.80 to $9,736. This follows a heavily bearish Monday wherein the price fell from $9,922.30 to $9,702.80. As per the confluence detector, the bulls will need to overcome two strong resistance levels at $9,745 and $10,040.

More Bitcoin News

Ripple Price Analysis: XRP/USD bulls match to jumpstart rally to $0.35

Ripple is making a comeback towards the broken support at $0.30. The recovery follows a slump from highs marginally under $0.35 to lows of $0.27119. The Bollinger bands daily middle curve formed ...

More Ripple News

Ethereum Price Analysis: ETH/USD bulls and bears are fighting around $265-level

Following a bullish Monday, wherein ETH/USD went up from $259 to $267.80, the bears were able to wrest back control in the early hours of Tuesday. So far, the bears have taken the price down to $265.45.

More Ethereum News

XMR/USD bulls make a comeback after finding support on the SMA 20 curve

XMR/USD bulls jumped up from the support provided by the SMA 20 curve to rise from $82.68 to $83.13. Before this, the market suffered from three straight bearish days following its repeated failure to ...

More Monero News

BEST CRYPTO BROKERS/EXCHANGES

Bitcoin Weekly Forecast: BTC bulls brace for jump to $11,000

Bitcoin (BTC) has been growing for three weeks in a row. The first cryptocurrency hit $10,504 on Thursday - the highest level of 2020.

Read the weekly forecast

BTC

ETH

XRP