The collapse of IB Token following a hacker’s large-scale sell-off underscores the critical risk of compromised social media accounts and the ease with which hype can drive volatile market shifts in the crypto space.
A significant security breach targeted Andy Ayrey, founder of Truth Terminal. A skilled hacker invaded Ayrey’s X account, using it to promote a questionable cryptocurrency token under the ticker IB. The hacker secured 12.5% of the token’s total supply through the deployer account by inserting a contract address in the post.
The token quickly gained traction within the crypto community, largely due to the promotion by Ayrey’s compromised account. Investors, drawn by the hype, poured funds into the token, causing its market capitalization to skyrocket to over $25 million. According to data from DEXScreener, the hacker extracted more than $600,000 during this period of inflated interest.
Hacker Exploits Lead to IB Token Collapse
The IB token’s early success faded quickly. Soon after an increase in investments, a hacker sold off their holdings on a large scale. As a result, the sudden selling caused a sharp price drop, with the token’s value falling nearly 98%, reducing its market cap to about $500,000. Consequently, many investors faced big losses, damaging trust in the token’s trustworthiness.
Amid the chaos, the token saw a brief comeback due to a “community takeover,” where dedicated supporters rallied to stabilize the price. However, the damage was already done, highlighting how vulnerable social media accounts are in the volatile crypto market.
After the attack, Andy Ayrey temporarily regained control of his X account. In a later post, he revealed the hacker got access by targeting his mobile carrier, suggesting a SIM swap attack. Ayrey expressed frustration and apologized, saying:
“Finally got back into my account. The hacker socially engineered my mobile carrier. Sorry about that.”
However, the account kept showing suspicious activity, indicating the breach was not fully resolved.
Truth Terminal Chatbot Amasses Over $1 Million
Truth Terminal had garnered considerable attention in the crypto community for being the first chatbot to accumulate over $1 million in holdings. This achievement was linked to its association with the “GOAT” meme coin and various donations of other meme coins that the chatbot endorsed during user interactions.
Ayrey developed Truth Terminal by training a customized version of Anthropic’s Claude 3 Opus large language model, utilizing his personal writings and data from platforms like 4chan, Reddit, and X.
In July 2024, the chatbot received a significant boost when venture capitalist Marc Andreessen donated $50,000 worth of Bitcoin after interacting with it on X. This endorsement further elevated Truth Terminal’s status, attracting more users and investments.
next