Tokens based on the x402 standard may hide a critical vulnerability

The x402 token standard has already produced assets with a total value of over $10B. However, the tokens on the standard may already be facing critical vulnerabilities soon after their new launch. 

Tokens based on the x402 standard saw rapid early promotion. However, the new asset class may be hiding vulnerabilities, and is yet to prove the rallies are sustainable. 

At the end of October, the new wave of tokens went through dramatic rallies of up to 10,000%. The token standard promised a new trading venue with higher potential upside, as well as a revolutionary new payment gateway. 

Tokens based on x402 may be exposed to critical vulnerability

Most x402 tokens rely on centralized facilitators, which are often connected to Coinbase. Software developer Yannick warned against exposure to structures that may prove vulnerable to attacks. 

The presence of centralized facilitators creates both a bottleneck and an attack vector, warned Yannick. 

The tokens may be vulnerable to DDOS attacks or cloud outages. Relayer wallets can also pose a bottleneck, leaving merchants unable to accept payments. 

Facilitators are known and centralized, and are potential subjects to government pressure, regulatory oversight, and shifting internal corporate policies. Some facilitators may be able to block transactions and deny services. 

Facilitators will also see payment requests and wallet addresses, with enough data to build consumer profiles and track users. The reality destroys the initial promise of confidentiality for the x402 standard.

x402 tokens rely mostly on memes

The x402 standard has been in development for a few months, but only recently broke out as a viable vehicle for speculation. 

As of November 2025, the total value of x402 tokens is over $10B, though most is still concentrated in the version of ChainLink (LINK) with over $9B in market value. 

The standard essentially uses HTTP to facilitate payments, later going through the facilitators to move the actual tokens. The x402 standard itself is not a chain-based facility, but rather a payment request tool. The main advantage is that x402 can field requests from merchants while also accommodating requests from AI agents. 

Currently, the existing x402 tokens combine stablecoins, as well as versions of other altcoins and assets. The most commonly used asset is USDC, which is mostly settled on the Base blockchain. The usage of USDC is also the only stablecoin suitable for x402 payment integration. The reason for this is that USDC is the only token with the ERC-3009 standard, an advanced Ethereum standard for gas-free payments. 

Analysts also warned the x402 workflow was incomplete, even for simple payments. The 402 code is generally not used for payments even in Web2, due to the requirements for a more secure financial intermediary, as well as some payment tracking based on regulations. 

In Web3, x402 is presented as anonymous and permissionless, but in fact, the flow may be intercepted and still require additional user verification. 

The workflow to add AI agents and give them freedom to engage in payments is also unfinished and has no real use cases.