Shiba Inu （SHIB） faced a significant price drop following a major hack at WazirX, resulting in substantial losses and liquidity issues. Despite this, the token shows signs of resilience.
Points
- Shiba Inu （SHIB） price dropped significantly after WazirX hack.
- $100 million in SHIB tokens stolen.
- Increased burn rate and whale activity observed.
- SHIB price shows potential for recovery despite recent volatility.
- WazirX hack underscores the importance of robust security measures.
The SHIB price plunged earlier today, losing about 7% of its value at one point. It has since managed to erase some of the losses, but the tension remains as the entire market is currently in a state of decline.
Earlier today, the leading cryptocurrency exchange in India, WazirX, reported that one of its multisig wallets had been compromised. The loss amounted to more than a whopping $230 million. A cyber attack occurred in one of our multisig wallets involving a loss of funds exceeding $230 million. This wallet was operated utilizing the services of Liminal’s digital asset custody and wallet infrastructure from February 2023.
$100 million of that was in SHIB tokens, which seems to be the major reason behind the drop from earlier today. Because of this, tokens listed on WazirX, including SHIB, BTC, and even the USDT stablecoin, traded at a considerable discount against the INR compared to their global and even local prices. This signals liquidity troubles and increased selling pressure.
Despite the price plunge, some other important metrics showed positive signs. For instance, the burn rate soared by 450%, likely caused by the increased volatility. This leads to more SHIB tokens being taken out of circulation, which is ultimately a positive factor for the remaining coins price-wise.
Meanwhile, Shiba Inu whales are also on a shopping spree. According to IntoTheBlock, the aggregated daily volume for transactions over $100K soared to $900 million, representing an increase of 1800%. Other metrics associated with the protocol’s Ethereum layer-two scaling solution – Shibarium – are also on the rise.
Despite the turmoil caused by the WazirX hack, Shiba Inu seems fundamentally unphased. Increased whale activity and the rise in burn rate suggest a potential for price recovery. For more updates, please check out our Shibarium news.
解説
- The WazirX hack underscores the critical importance of robust security measures for exchanges and crypto projects.
- The sharp increase in SHIB’s burn rate and whale activity suggests strong support and potential for price recovery.
- Despite the recent volatility, positive metrics indicate resilience in the Shiba Inu ecosystem.
- Monitoring security developments and whale movements can provide insights into SHIB’s future price trends.