Crowd Machine (CMCT) Token Wiped Out After Hacked Reserves

A compromised wallet siphoned away the reserves of the Crowd Machine (CMCT) project, tanking the market price over the weekend. The slide continued on Monday. The team went out with a statement on Monday morning, giving very little information of the nature of the hack. But despite the reassurance that the project would continue, the CMCT token lined up among the biggest losers on CoinMarketCap.

CMCT lost more than 63% on Monday as of 4:30 UTC, down to $0.001887. The crash deepened at 02:30 UTC on September 24, and in the end, trading volumes dwindled to nothing as traders abandoned the risky asset. But before that, on September 22, CMCT started crashing from $0.0129. The current levels reveal losses close to 85%, with more unraveling in store.

The BTC price of the asset also slid, from 129 Satoshi to 27 Satoshi, with a speculative bounce during the weekend. But in the case of CMCT, hope may be lost for a long time.

There are more expectations of dumping a large stash of coins on exchanges. However, the hacker’s address was last active around 20 hours ago at the time of writing. The latest transactions from the hacker’s address show the coins were immediately moved to exchanges - IDEX and HitBTC.

The Crowd Machine project had the ambitious aim of competing with AWS cloud services, to deploy enterprise-level apps by using decentralized spare computing power. In some regards, the model is similar to Golem (GNT), although the Crowd Machine project is way behind on launching the distributed computing ecosystem.

The Crowd Machine ICO attempted to perform daily auctions similar to EOS, but later gave up on the idea. The ICO was also closed to US-based buyers.

https://twitter.com/Crypt0Cookie/status/1043771215075266561

The ICO price of the token was $0.10, meaning that after trading, it lost around 90% once, and then fell by 90% one more time.

Twitter users also noted the project had other red flags, such as forgetting to send compensation tokens to advisors:

https://twitter.com/loomdart/status/1043875400932368384

The crash of Crowd Machine comes during a time when ICO projects have lost credibility, with old projects failing to deliver a product for years, while new ones see crowdfunding dwindle to nothing.