VeVe, a NFT marketplace faced an exploit on Tuesday which resulted in millions of in-app tokens, called gems, being acquired illegally.
VeVe acknowledged the exploit on Twitter (NYSE:TWTR) on Wednesday.
The exploit resulted in a sharp decline in the prices of NFTs listed on the platform.
VeVe, an NFT marketplace with licensed digital collectibles, faced an exploit on Tuesday which resulted in millions of in-app tokens, called gems, being acquired illegally. Veve is popular for becoming the official launch partner of mainstream brands such as Coca-Cola (NYSE:KO), Pixar, and Marvel.
On Wednesday, in an official tweet, VeVe had acknowledged the exploit on its platform and said that the attackers managed to illegitimately acquire a “large amount” of gems. Pending the completion of the investigation, the app-based NFT platform has shut down the marketplace as well as gem purchases.
The platform also restricted several user accounts that were trying to purchase gems from fraudulent accounts.
Gems are VeVe’s in-app tokens that users can exchange for collectibles during drops in the market. Early reports show that the cyber criminals behind the exploit managed to mint millions of gems without having to pay for them. They were able to do this by exploiting a bug in the platform’s buying mechanism.
The gem exploits on VeVe have resulted in a sharp decline in the prices of NFTs listed on the platform. Users experienced up to an 80% price plunge in the value of their NFTs.
One Twitter user shared a timeline of events of the exploit. According to the user, VeVe first registered the largest 3-day buying of the in-app token gems. This milestone was then followed by a crash in the price of the token by half, falling from 0.5 to 0.25. The marketplace then went into maintenance.
Marvel NFT partner Veve closes its marketplace after an in-app token exploit. Twitter users have complained that the exploit has resulted in a sharp decline in the price of their digital collectibles over the past week.
The OMI token is an in-app utility token intended for use in the VeVe app. Using/holding OMI will grant token holders and VeVe Collectors various perks, rewards, and advantages within the ecosystem.
Payout is a system that allows you to withdraw your Gems from your VeVe wallet and into your bank account in your local currency. You must complete KYC (Know Your Customer) and be verified before you will have access to the feature.
To solve this, VeVe started building on Immutable. As the leading layer 2 scaling solution for NFTs on Ethereum, Immutable provides VeVe NFT holderswith instant and gas-free trading, massive scalability (up to 9,000 TPS), and an exceptional user experience without compromising the security of the Ethereum blockchain.
Payout allows VeVe users to withdraw Gems from their VeVe wallet into their bank account as fiat (e.g., USD). To use the feature, users must complete KYC (Know Your Customer) and be approved before making any withdrawals. Information submitted for the KYC approval is securely stored by VeVe's MTL partner — BlueSnap.
When you buy gems in VeVe, you're charged in USD: 1 gem costs $1USD. But you might pay a slightly different price based on your currency or payment method - read on to learn more. Gems are the VeVe in-app token that you use to exchange for collectibles during drops or in the Market.
You haven't been approved for Payout - you need to complete the KYC process at which point your account should be enabled for Payout. However, this may not occur if: You live in a restricted country or a Wyre "non-operational country" (read more here: https://help.veve.me/what-are-the-veve-country-restrictions)
You might be connecting through an IP address that's being blocked. Try turning off your WiFi, or connecting to a different network, and then try loading Veve again. The VeVe app is out-of-date. Make sure you check the App Store for an updated version of VeVe.
Based on 178 customer reviews from our shopper community, VeVe Digital Collectibles's overall rating is 3.26 out of 5 stars and 67% of reviewers recommend this brand, which indicates that most consumers are generally satisfied with their purchases.
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VeVe Closes NFT Marketplace After In-App Token Exploit