Major Exchange Attack Leads to Millions in Losses for Shiba Inu (SHIB)

The SHIB price plunged due to a hack of India’s largest crypto exchange, WazirX, resulting in a loss of about 7% of its value and over $230 million in crypto.

Points

• SHIB price plunged due to the WazirX hack.
• Over $230 million was stolen, including $100 million in SHIB tokens.
• Tokens on WazirX traded at a discount against the INR.
• Increased burn rate and whale activity noted.
• Despite the turmoil, SHIB remains fundamentally strong.

Earlier today, the leading cryptocurrency exchange in India, WazirX, reported that one of its multisig wallets had been compromised, leading to a loss exceeding $230 million. This cyberattack included a significant amount of Shiba Inu （SHIB） tokens, causing the SHIB price to plunge by about 7% at one point.

The compromised wallet, which had been using Liminal’s digital asset custody and wallet infrastructure since February 2023, included $100 million worth of SHIB tokens. This incident has led to tokens listed on WazirX, including SHIB, BTC, and even the USDT stablecoin, trading 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 drop, some important metrics for SHIB have increased. The burn rate soared by 450%, likely due to the increased volatility. This means more SHIB tokens are being taken out of circulation, which is ultimately a positive factor for the remaining coins, price-wise. Additionally, Shiba Inu whales are also on a shopping spree, with the aggregated daily volume for transactions over $100K soaring to $900 million, representing an increase of 1800%.

Metrics associated with the protocol’s Ethereum layer-two scaling solution, Shibarium, are also on the rise. All in all, despite the turmoil caused by the WazirX hack, Shiba Inu seems fundamentally unphased. The SHIB price has managed to erase some of its losses and shows signs of potential recovery.

解説

• The WazirX hack led to a significant loss of over $230 million, including $100 million in SHIB tokens.
• This caused SHIB and other tokens to trade at a discount on WazirX, indicating liquidity issues.
• Despite the price drop, SHIB’s burn rate and whale activity have increased, which are positive signs for the token’s value.
• Metrics for Shibarium are also on the rise, suggesting strong fundamentals for Shiba Inu.
• The SHIB price shows potential for recovery despite the recent turmoil.