Memecoins Facing Downturn as SHIB and Dogecoin Decline Following $2.4M Shibarium Hack
A flash loan attack on Shiba Inu's Shibarium results in significant losses for meme tokens.
Key Insights:
- A flash loan exploit on Shiba Inu’s Shibarium network resulted in a loss of $2.4 million, straining investor confidence in meme tokens.
- SHIB prices have plummeted over 5% within the past 24 hours, with the CoinDesk Memecoin Index dropping by 5%.
- DOGE is also experiencing declines as large whale transfers contribute to a bearish outlook.
Article Overview
The incident involving a flash loan attack on Shiba Inu’s Shibarium has raised alarm across the cryptocurrency space, particularly impacting meme tokens. The vulnerability in Shibarium’s validator system allowed hackers to siphon off a significant amount of ether (ETH) and SHIB tokens, resulting in severe price drops across the board. The CoinDesk Memecoin Index, a measure of the largest meme cryptocurrencies, has witnessed a similar decline of 6.6%. Meanwhile, the broader CoinDesk 20 Index has decreased by 2.3%.
At the heart of the attack was the BONE token, which the attackers manipulated through flash loans to gain control of validator keys, enabling them to authorize unwanted transactions. This breach has emphasized ongoing security vulnerabilities within blockchain technologies, with market sources confirming substantial fallout.
Meme Tokens in Crisis
During this turbulent period, SHIB declined by 4%, dropping to approximately $0.000013159. The token witnessed an agitated trading period characterized by a 4% swing in value. Sharp trading activity of over 1 trillion tokens indicates significant pressure, hinting at a possible capitulation phase.
On the other hand, the BONE token saw a sharp decrease, trading at around $0.20, diminishing from an earlier high of $0.36.
Conclusion
In light of the latest developments, investor confidence continues to wane. DOGE also dropped 4% on Sunday and further weakened to $0.262. Notably, a substantial transfer of DOGE to a centralized exchange has raised concerns about accelerated liquidation intentions among holders. As the market grapples with these informative insights, many question the longevity of meme tokens lacking robust security frameworks.
