Gitcoin, the crypto developer platform, faces a setback as it loses nearly half a million dollars in GTC tokens after mistakenly sending funds to an unrecoverable contract address. Learn more about the incident and its impact on GTC’s price.
Crypto developer platform Gitcoin is grappling with a significant loss of approximately $460,000 in GTC tokens. This loss occurred due to an unfortunate transfer mishap, where funds intended for a merchandise, memes, and marketing budget proposal ended up in an unrecoverable contract address, rather than a multisignature one. As a result, 521,440 GTC tokens are now locked in the contract, with no way to retrieve them.
The incident has prompted Gitcoin’s team to reevaluate their processes to prevent such errors in the future and establish clearer accountability measures. Gitcoin researcher Umar Khan suggested viewing the lost tokens as a reduction in GTC supply rather than a loss of treasury funds.
This setback has also affected the price of GTC, which has fallen by 1.1% over the past 24 hours and now trades at $0.889, marking a significant decline from its all-time high of $89.62 in May 2021, according to CoinGecko.
Observers have highlighted the need for improved Crypto UX to prevent such incidents in the future.