Syscoin

Syscoin receives a C- risk grade (55/100) from Hindenrank, where lower scores indicate lower risk. Post-exploit L1 with near-zero TVL and collapsed token value; existing bridge architecture has confirmed critical vulnerability requiring comprehensive reaudit before trust can be restored. Syscoin is a dual-layer blockchain combining a Bitcoin-derived UTXO chain (merge-mined for security) with NEVM, an Ethereum-compatible execution layer. It was exploited in June 2026 when an attacker submitted a malformed SPV proof, minting 5 billion unbacked SYS tokens. The ecosystem has effectively wound down — TVL is zero and the SYS token has lost 95% of its all-time high value. It remains a cautionary example of how unaudited cross-layer bridge code creates catastrophic vulnerability even in protocols with otherwise robust designs.

The key risks identified for Syscoin are: (1) The SPV bridge relay was exploited in June 2026 for $8.56M in unbacked token minting — similar attacks could recur if the rewritten relay code has remaining vulnerabilities (2) SYS token has no hard supply cap and has lost 95% of its value; with near-zero TVL the ecosystem has largely been abandoned by users and developers (3) Merge-mining security depends on Bitcoin miners voluntarily participating; if major pools drop support, the chain becomes vulnerable to cheap 51% attacks

Syscoin scores 55/100 across eight risk dimensions: Mechanism Novelty: 9/15, Interaction Severity: 13/20, Oracle Surface: 3/10, Documentation Gaps: 6/10, Track Record: 11/15, Scale Exposure: 3/10, Regulatory Risk: 4/10, Vitality Risk: 6/10. The highest risk area is Track Record at 11/15.

Among 58 rated L1 protocols on Hindenrank, Syscoin ranks #56 by safety (lowest risk score = safest). Its 55/100 risk score and C- grade place it among the riskier L1 protocols.

Syscoin scores 11/15 on the Track Record risk dimension, indicating some history of security incidents or exploits. Higher scores reflect more severe or frequent incidents. Review the full risk report for details.