Phantom Wallet Experiences Nearly Three Hours of Downtime Due to Backend Issue

The popular Solana-based crypto wallet Phantom experienced nearly three hours of downtime on Monday due to a backend issue, causing some users to see inaccurate balances in their accounts. The outage coincided with a GRASS token airdrop, which led to a surge in user activity and technical challenges for many users trying to claim their tokens.

Phantom’s status page reported a major incident with the wallet’s backend infrastructure that took two hours and 44 minutes to resolve. The team assured users that services should be working well now and that they will continue to monitor the situation closely.

The GRASS token airdrop, which distributed 100 million tokens to users, is part of a decentralized platform that allows users to monetize their unused internet bandwidth by contributing it to a network supporting the development of AI models. Node operators earned rewards in the form of Grass points, which could be converted to GRASS tokens.

Despite the technical issues during the claim process, GRASS saw a volatile first day of trade, with the token down 10.2% at press time. The token is available on exchanges such as KuCoin, Bybit, and Bitget, with a fully diluted valuation of $813 million.

This incident marks the 12th major backend issue reported by Phantom this year, with previous incidents accounting for approximately one-and-a-half hours of downtime. Users are advised to stay updated on any further developments and to exercise caution when participating in token airdrops and trading activities.