A malformed staking transaction triggered a brief chain partition, raising security concerns yet causing only modest market impact.
The Cardano blockchain experienced a temporary chain split on Friday after a malformed delegation transaction exposed an old vulnerability in its underlying software. While the issue raised fears of orphaned transactions and potential double-spends, the network was quickly stabilized and ADA’s price remained largely resilient amid broader crypto market weakness.
Old Code Bug Sparks Network Partition
According to an incident summary from ecosystem organization Intersect, a “malformed” ADA delegation transaction triggered conflicting behavior among Cardano nodes. The bug — present in a legacy software library — caused a subset of nodes to disagree on how to process the transaction, resulting in a short-lived chain split.
Stake pool operators were instructed to upgrade to the latest node version to resolve the partition. The update allowed the fractured histories to converge into a single synchronized chain.
Blockchain analyst Maria Levin explained that “any chain disagreement, even temporary, raises risks of lost or orphaned transactions and exposes weaknesses in node implementation.”
AI-Generated Code Behind the Incident
The faulty transaction was created by a staking pool operator known as Homer J, who used AI-generated code to push the malformed delegation. He later accepted responsibility for the disruption, sparking intense debate inside the Cardano community.
Some community members argued the event served as a valuable stress test. However, Cardano founder Charles Hoskinson strongly disagreed, calling the act an attack on the network. In a video update, Hoskinson said:
“This kicked a hornet’s nest… these actions impact the lives, money, and commerce of millions of people. It’s like trying to shut down an economy.”
Hoskinson also stated that the FBI has been contacted and is now investigating the incident due to its severity.
ADA Price Shows Resilience Despite the Split
Chain splits typically undermine market confidence, yet ADA’s decline remained limited. The token slipped from $0.44 to around $0.40, a modest move given the circumstances. The broader market had already been trending downward following October’s historic liquidation event, which wiped out $20 billion in leveraged crypto positions.
Crypto market researcher Daniel Hsu noted that “the muted reaction shows the selloff was driven more by macro market pressure than by Cardano’s technical issue.”
Still, the incident reignited criticism from skeptics. One user quipped that no one noticed the partition “because nobody uses it.”
While the Cardano chain split has raised concerns about code reliability and node coordination, the swift patch rollout prevented long-term damage. The modest ADA price reaction suggests the market views the event as a contained technical failure rather than a systemic threat — though the regulatory attention now involved may add new pressure in the weeks ahead.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.