NMT plummeted as much as 75% before recovering after the team assured the community that the project was not compromised.
AI token NetMind plummeted earlier today after a wallet belonging to an early-stage miner sold large amounts of NMT.
“The NetMind team is aware of the recent situation that has caused a mass selloff of NMT and is actively working on mitigation,” wrote the team today on ‘X,’ pointing to an early miner who mined 440,000 NMT.
NetMind’s team added that they “do not see a long-term risk here” and that the platform itself is not compromised.
The NMT token briefly traded under $4 before rebounding on the team’s statement. It is currently down 30% on the day, trading at a fully diluted valuation of $1 billion.
Crypto Twitter exploded in a flurry of speculation that the protocol was hacked, but reports point to an exploit suffered by an early NMT miner, who then saw his tokens bridged to BSC and sold off.
NetMind is a platform aimed at democratizing AI computing power. The team did not immediately reply to The Defiant’s request for comment. Launched on Binance Chain last month, NMT surged more than 500% in a matter of weeks before today’s events.
AI tokens are one of the hottest narratives in crypto, with a market cap that has ballooned 800% since mid-October.
