A trader recently faced a significant loss of over a million dollars in cryptocurrency following a hard fork of the 0L network. The individual, known as NN, shared their unfortunate experience on social media, highlighting the community’s disapproval of the network’s decision.

The 0L Network was initially established to incentivize developers and community members actively involved in project development. However, the recent hard fork, triggered by a “rogue core” member, resulted in the deletion of 4% of the total token supply, affecting innocent users like NN who had purchased tokens nearly two years ago.

NN, who had acquired 147 million Libra tokens valued at $1.47 million in February 2023, joined the protocol to contribute to marketing efforts. The trader alleged that the team was aware of a bug for over two years, with some insiders exploiting it. Despite this knowledge, the team neglected the issue due to the token’s perceived value.

The hard fork was prompted by a smart contract bug that allowed insiders to unlock tokens at an accelerated rate by dispersing them across multiple wallets. Even after the fork, a pseudonymous trader revealed that the loophole persisted in the latest version of the 0L Network, v7.

Instead of addressing the loophole directly, the team opted to fork out wallets suspected of taking advantage of it. NN expressed frustration as the team’s actions impacted innocent users, including themselves. Despite purchasing tokens from various validators, NN’s entire wallet was affected due to one allegedly fraudulent validator.

The incident serves as a cautionary tale for cryptocurrency investors, highlighting the risks associated with bugs and hard forks in decentralized networks. It underscores the importance of thorough research and due diligence before engaging with such platforms to mitigate potential losses.

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