The price of the cryptocurrency Telcoin (TEL) suffered a 40% drop after an alleged error linked to the implementation of the Polygon (MATIC) wallet. Blockchain security firm Peckshield highlighted that the Telcoin exploit resulted in a loss of $1.3 million in cryptocurrencies.
“Telcoin $TEL dropped -41% Telcoin suffered an exploit, resulting in a loss of approximately $1.3 million worth of cryptocurrencies,” he wrote.
The team behind Telcoin stated that they are already aware of what happened and highlighted that the use of the application has been temporarily frozen.
“We are aware of the situation with the Telcoin app. We have temporarily frozen use of the app while we analyze the issue and will provide an update as soon as possible.”
We are aware of the situation with the Telcoin App. We have temporarily frozen use of the app while we look into the issue, and will provide an update as soon as we can.
— Telcoin (@telcoin) December 25, 2023
At the time of publication, the price of Telcoin was quoted at US$0.00151827, up 35.2% in the last 24 hours.
What is Telcoin (TEL)?
The Telcoin (TEL) cryptocurrency, launched in 2017, is an Ethereum-based token developed with the aim of bringing instant international transactions to all mobile users.
The Telcoin cryptocurrency focuses on the remittance market, which Western Union and other large banks dominate. Long transaction times, high fees and delays are routine when transferring money internationally. Telcoin offers a solution by partnering with telcos like GCash to bring mobile users high-speed, low-cost digital transfers to supported money and wallet platforms in multiple countries such as Canada and the Philippines.
The goal is to expand its network by securing partnerships with telecommunications giants like Verizon and AT&T and establishing global shipping channels. Telcoin also provides services for e-commerce sites that want to do business with international customers.
The Telcoin token runs on the Ethereum blockchain with the proof-of-stake (PoS) algorithm, where Telcoin partners act as validators on the network. The project currently has a “proof of concept (PoC)” model. Telcoin uses this model to determine whether a transaction is viable in the real world before validating it. PoC is not a consensus algorithm. Instead, startups often use it to test their projects on the blockchain market before mass production. This helps identify the project’s strengths and weaknesses.
The views and opinions expressed by the author, or anyone mentioned in this article, are for informational purposes only and do not constitute financial, investment or other advice. Investing in or trading cryptocurrencies carries a risk of financial loss.