We’re sorry to bring you yet another hacking story. But this time, it’s not just a wallet with some funds. Hackers stole up to $230 million worth of cryptocurrencies from an Ethereum-based decentralized finance platform. CREAM is the most recent victim in a series of hacks that have affected Ethereum-based decentralized finance platforms in recent months.
It was the second time in less than a month that Cream Finance (CREAM), a decentralized finance project on Ethereum (ETH), crashed.
On October 30th, hackers hacked the DeFi platform, stealing up to $130 million worth of various cryptocurrencies, including, for example, ETH.
Earlier this year, the platform was hacked for the third time this year. Yesterday, it was hacked again, but this time the platform wanted to compensate the victims.
The platform announced yesterday that it will be distributing 1.45 million CREAM tokens to the victims as compensation.
There is also a huge increase in supply, as the project only has about 700,000 tokens in circulation. Therefore, it seems likely that the price will be impacted negatively by this.
This happened right away. The CREAM token dropped from $88 to $55 in two hours, a drop of 37.5%. At the end of October, the price fell from $154 to $100, a 35% loss.
Since the end of October, the price has even dropped 64% in value. It also doesn’t help that investors are now being compensated in CREAM, but larger cryptos like ether were also stolen.
Many people, however, feel that the victims should be thankful that they got any compensation at all.
These flash loan attacks have already been used on several DeFi projects this year. It is a newly emerging market with problems in the early stages and underlying code that is vulnerable to abuse.
Furthermore, the products are rarely audited.
Although this market has been growing rapidly, DeFiLlama recently reported a new record of a whopping $275 billion total value locked in DeFi projects.
Via this site.
Author
Chris Munch is a professional cryptocurrency and blockchain writer with a background in software businesses, and has been involved in marketing within the cryptocurrency space. With a passion for innovation, Chris brings a unique and insightful perspective to the world of crypto and blockchain. Chris has a deep understanding of the economic, psychological, marketing and financial forces that drive the crypto market, and has made a number of accurate calls of major shifts in market trends. He is constantly researching and studying the latest trends and technologies, ensuring that he is always up-to-date on the latest developments in the industry. Chris’ writing is characterized by his ability to explain complex concepts in a clear and concise manner, making it accessible to a wide audience of readers.
