What Are x402 Tokens?
The x402 token ecosystem is one of the latest trends revolutionizing the cryptocurrency space. Inspired by the Internet status code ‘HTTP 402: Payment Required,’ this open payment protocol simplifies small, direct transactions between apps, platforms, and wallets—bypassing traditional payment systems. With major backers like Google and Coinbase, the x402 ecosystem has rapidly gained momentum, accompanied by hundreds of meme-style tokens and innovative applications.
Growth Comes With Risks
Despite its growing popularity, the x402 ecosystem faces major security challenges. According to a report from GoPlus Security, a prominent blockchain risk-analysis platform, many early x402-based tokens exhibit vulnerabilities that could pose risks for users. These include unlimited minting, excessive developer permissions, honeypot-like behaviors, and signature-replay flaws—issues that can expose user wallets to hackers.
One alarming incident occurred on October 28, when a cross-layer protocol exploit drained USDC funds from over 200 wallets in mere minutes. Another project, Hello402, also suffered from security loopholes like unlimited minting and liquidity issues, severely impacting its token price.
High-Risk Tokens Flagged by GoPlus
GoPlus’ AI auditing engine evaluated 30+ x402 tokens across platforms like Binance Wallet and OKX Wallet. Some flagged high-risk tokens included FLOCK, x420, U402, and PENG. Each was identified as vulnerable due to specific security flaws, which remain critical reminders for users to exercise caution when investing in new tokens.
The Road Ahead: Balancing Innovation and Security
As the x402 ecosystem continues to expand, robust security practices will become necessary to ensure user trust and system sustainability. Traders looking to explore this space should carefully research token risks and rely on audited listings to avoid falling victim to potential exploits.
If you are venturing into crypto transactions and token exploration, tools like GoPlus Security can help audit and assess risks, making it a must-have resource for beginners and seasoned traders alike.
