On July 18, over 5 trillion Shiba Inu (SHIB) coins were illicitly transferred from the WazirX crypto exchange, highlighting a major security breach that resulted in the loss of approximately $230 million worth of crypto.
Details of the Exploit
According to Whale Alert, a prominent on-chain tracking service, a total of 5.43 trillion SHIB, valued at $102.12 million, were moved to an unknown address. The transaction has been linked to the address 0x04b21735, which is believed to be associated with the hacker responsible for the exploit. This incident marks one of the largest hacks targeting WazirX, a leading cryptocurrency exchange in India, headed by CEO Nischal Shetty.
Market Reaction and Speculation
The timing of the hack is particularly notable given the recent visit of Shiba Inu's lead developer, Shytoshi Kusama, to Mumbai. This coincidence has fueled further speculation and discussion within the cryptocurrency community regarding the security of exchanges and the potential impacts on the SHIB market.
Impact on SHIB Price
In the wake of the hack, SHIB’s market performance took a hit. The price dropped by 4.72%, trading at $0.00001858 at the time of reporting. The 24-hour price range for SHIB was between $0.00001856 and $0.00001941. Despite an 874% surge in the burn rate reported by Shibburn, with nearly 8 million coins incinerated in the past day, the token continued to trade in the red.
Broader Market Trends
The price decline of SHIB aligns with broader market trends, suggesting a possible correlation with overall market movements rather than isolated incidents. However, some market analysts speculate that SHIB could recover in tandem with the broader market. The Relative Strength Index (RSI) for SHIB inched slightly toward the buying region, standing at 53, indicating that the coin is currently neither overbought nor oversold.
Conclusion
The recent hack and the resulting transfer of over 5 trillion SHIB from WazirX underscore significant security challenges within the cryptocurrency exchange landscape. As the market reacts to these developments, the focus remains on potential recovery and the ongoing evaluation of exchange security protocols to prevent such incidents in the future.
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