Prism moves to new Ethereum contract after attack drains nearly 40% of fees

Prism, a token that pays out a share of trading fees to every holder, is moving to a fresh Ethereum contract after an attacker spent most of July siphoning off nearly 40% of those fees. The project disclosed the exploit late Tuesday and said it would abandon the original PRISM token. That token has already plunged about 91%, according to The Defiant.

The exploit appears to have been a slow drain rather than a single large hit. Over several weeks, the attacker diverted a substantial portion of the fees that the token’s smart contract collects and automatically distributes to holders. Prism didn’t provide a precise dollar figure for the stolen amount, but the scale forced the team to shutter the old contract and start over.

The new contract is live on Ethereum now, the project said. The original PRISM token will be deprecated. Holders of the old token are left with a coin that has lost the vast majority of its value and no longer feeds fee revenue into the distribution mechanism.

For a token that touted fee-sharing as its core value proposition, losing nearly 40% of that revenue stream was a critical blow. The 91% price collapse reflects a market that had already priced in the damage. The question now is whether the new contract can rebuild trust and attract enough trading volume to generate meaningful fees again.

No migration details have been released yet – the team simply said to watch for an official update. The timing of any token swap or airdrop for old PRISM holders remains unclear.

The incident adds to a growing list of revenue-sharing tokens that have been exploited or simply abandoned this year. Prism’s fate will depend on how quickly it can prove the new contract is secure and restore the fee pipeline that originally drew investors.

The new contract address and any migration steps are likely to be announced in the coming days. For now, the old PRISM token is effectively dead, and traders are left betting on a fresh start.