The Playside Studios Ltd (ASX: PLY) share price is nosediving today following a project update on the BEANS Web 3.0.
At the time of writing, the video game developer's shares are down 10.31% to $1.175.
What's dragging Playside Studios shares lower?
Investors are selling off Playside Studios shares after the company reported a technical issue regarding a smart contract.
According to its release, Playside Studios advised that an error allowed 2,223 BEANS to be minted for minimal consideration. The mistake in judgement occurred late afternoon yesterday following the sale of 7,777 BEANS. The latter generated a net revenue of $8.38 million.
Playside Studios stated that once it found out what happened, the independent third-party quickly facilitated corrective action via the NFT marketplace.
As a result, normal trading was quickly restored and no long-term impacts are expected to arise.
The costs associated with fixing the issue by the third party is estimated to be less than $500,000. Playside Studios noted that it does not foresee any material changes to its revenue earned from the original mint.
To ensure that the error doesn't occur again, the company has reviewed its internal procedures and made adjustments. Further process improvements are anticipated to follow to safeguard the BEANS project in future.
Playside Studios said that it will reveal the identity of all BEANS to the owners on Thursday 10 February. More information to the community will be provided in relation to new features being added to the roadmap ahead.
Playside Studios share price snapshot
Over the past 12 months, Playside Studios shares have gained more than 220%, and are up 7% year-to-date.
Based on today's price, Playside Studios commands a market capitalisation of roughly $170.26 million, with approximately 144.29 million shares outstanding.
