GMX Crypto Token Plunges After Major Hack
On July 9,the GMX crypto token took a significant hit after a hack on its perpetual exchange platforms on Avalanche adn Arbitrum. The token’s value dropped to $10.20, its lowest since April 7. This represents a 40% decrease from its July high and a 76% drop from its November peak.
The GMX team confirmed the breach on X, stating that GMX V1 on Arbitrum was exploited. Hackers stole about $40 million from the GLP pool.In response, trading on V1 was paused, and GLP token minting was halted.
The exploit occurred due to a flaw in how short average prices were calculated in GMX V1. Hackers manipulated the GLP token pricing,draining $40 million. As a precaution, new token mining on GMX V2 was also suspended. SlowMist, a blockchain security firm, explained that the hackers used a reentrancy attack to inflate GLP prices artificially.
GMX, once a leading player in perpetual exchanges, now faces stiff competition from platforms like Hyperliquid and Jupiter. Despite this, it still processes millions in daily transactions. In the last 24 hours, it handled $179 million in transactions.
GMX joins other exploited platforms in 2025.The team halted trading and token minting to contain the damage.
GMX’s security has always been a priority, with numerous audits conducted. Though, the recent incident exposed a vulnerability in the pricing mechanism. The team attributed the exploit to how short average prices were calculated. They also suspended new token minting on GMX V2 as a precaution.
slowmist explained that the hackers used a reentrancy attack to manipulate GLP token prices. The platform now joins other exploited platforms like Bybit, Coinbase, and Cetus Protocol.The team is working to resolve the issue and prevent further damage.
GMX, once a major player in perpetual exchanges, now faces competition from platforms like Hyperliquid and Jupiter. Despite this, it still processes millions in daily transactions. In the last 24 hours, it handled $179 million in transactions.
GMX’s price chart shows a sharp reversal from its June peak of $18.11. The token has broken below key support levels, indicating bearish momentum.
The path of least resistance now points lower. The next target for sellers is the year-to-date low of $9.70. A break below that level could lead to further downside, potentially toward $8.
