What happened: Harmony, a layer-1 blockchain, was hit by a major exploit where approximately 4 billion ONE tokens—about 26% of its circulating supply—were minted through empty blocks. Roughly 2.8 billion of these tokens were moved to exchanges, causing the price of ONE to plummet by 40% to a record low.
Why it matters: Despite the massive local crash, the broader crypto market remained unfazed; Bitcoin hovered near $64,000, barely moving. This shows that the market is currently viewing protocol-specific failures as isolated incidents rather than systemic threats. Investors are largely sidelined, keeping a close watch on the upcoming U.S. CPI report, which is expected to set the tone for risk assets.
