NFT Platform SuperRare Loses $730k in $RARE to Hackers

SuperRare, a popular NFT marketplace, has suffered a security breach, resulting in the loss of about $730,000 worth of its native token, RARE. Blockchain security firm PeckShield was the first to identify and notify the SuperRare team of the attack via X. At the time of writing, neither SuperRare nor its top executives have commented on the attack.

What is SuperRare?

SuperRare is a digital art marketplace where artists sell one-of-a-kind non-fungible token (NFT) artworks. Not just anyone can list their art, adding to the platform’s uniqueness. Artists must apply and be approved. SuperRare runs on the Ethereum blockchain.

SuperRare’s native token, RARE, serves as the lifeblood of the platform. The Ethereum-based cryptocurrency empowers holders to vote on decisions regarding the platform’s governance. This token is used within the SuperRare Decentralized Autonomous Organization (DAO), where community members help guide the future of the NFT marketplace.

What Happened in the Hack?

Although PeckShield blew the whistle on the hack that resulted in the $730,000 theft, it did not shed light on how the hack occurred. Interestingly, LISA, an AI-powered security agent, shared insights on how the hacker(s) executed the attack.

The vulnerability is tied to a flaw in SuperRare’s ‘updateMerkleRoot’ function in some of its smart contracts. According to LISA, the flaw can enable “anyone to modify the Merkle root” and instigate “fraudulent claims” and drain contract funds.

Despite the severity of the attack, SuperRare has yet to make a public announcement acknowledging or mitigating the hack or movement of the stolen funds.

This is not the first time hackers have exploited a loophole in a project’s smart contracts to steal funds. Earlier this year, an attacker stole $13 million from GMX, a decentralized perpetual exchange, by exploiting a vulnerability in its smart contracts. This and other similar attacks underscore the need for blockchain project owners to secure the smart contracts that govern their operations.

Did SuperRare’s Price React?

Despite the large amount stolen, the RARE token is currently trading at around $0.05933. This represents a mild 1.24% in the last 24 hours, according to data from CoinStats. This suggests that the security breach had a minimal impact on RARE’s market value.

Still, it is a far cry from its all-time high of over $3.79.

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