GMX Crypto Token Plunges After Major Hack
On July 9, the GMX crypto token took a significant hit after a major hack on its perpetual exchange platforms on Avalanche and Arbitrum. The token’s value dropped sharply too $10.20, its lowest since April 7.This decline represents a 40% fall from its July high and a 76% drop from its November peak.
The GMX team confirmed the breach on X, revealing that hackers exploited GMX V1 on Arbitrum, draining about $40 million from the GLP pool. this incident led to a significant drop in the GMX token value.
GMX Token Plunges Following Major Security Breach
On July 9, the GMX crypto token experienced a sharp decline after a security breach on its perpetual exchange platforms on Avalanche and Arbitrum. The token’s value fell to $10.20, its lowest as April 7. This represents a 40% drop from its July high and a 76% decrease from its November peak.
The GMX team confirmed the hack on X, revealing that GMX V1 on Arbitrum was exploited. Hackers stole around $40 million from the GLP pool. In response, the protocol halted trading on V1 and stopped minting GLP tokens. The team attributed the exploit to a flaw in the short average price calculation in GMX V1.As a precaution, they also suspended the mining of new tokens on GMX V2.
SlowMist, a blockchain security firm, explained that the exploit was due to a flaw in GMX’s pricing mechanism. Hackers used a reentrancy attack to manipulate GLP token prices,artificially inflating them within a single transaction and profiting through redemption operations.
GMX, once a major player in the perpetual exchange industry, now faces competition from platforms like Hyperliquid and Jupiter. Despite this, it still handles millions in daily transactions.However, the recent hack adds GMX to a growing list of exploited platforms in 2025, including Bybit, Coinbase, and Cetus Protocol.
GMX’s price chart shows a sharp decline since June, breaking below key support levels. The next target for sellers is the year-to-date low of $9.70. A break below this level could led to further price drops, potentially toward $8.
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