On Sunday, Roll Wallet was hacked which sent the value of social tokens plummeting all the way down to the bottom.
Down By More Than 50%
Social tokens are a type of cryptocurrency designed specifically to support online communities. A number of these are in a race to the bottom following a hack on Roll Wallet. Most notable among them – due to the current NFT frenzy – is WHALE. WHALE is a social coin whose value is maintained by a basket of Non Fungible Tokens (NFTs). Other coins that have plummeted are PICA and RARE.
The hack was confirmed on Twitter by the founder of WHALE, who confirmed that 2.17% of all tokens were compromised in an attack on the platform’s hot wallet. However, the remaining assets are secure, having been stored in cold wallets.
The founder went on to say that he is confident that this attack will not have far-reaching effects on the cryptocurrency and its future.
“We were fortunate that this hack was minimally detrimental to the project despite the large price volatility (due to the level of liquidity on Uniswap) and will find a way to absorb this so it has zero impact on our short, mid and long term growth of $WHALE.”
However, as the following chart shows, recovery – if there is one – may take a while.
On the other hand, competitor token RLY – a token launched by the Rally platform – has reached its highest value in history.
Meanwhile, MyCrypto reports that the attacker who pulled off this digital heist is already cashing out to Tornado Cash – with the total amount of ETH reaching nearly 2600. It also looks like social tokens were minted by malicious parties before the attack, hinting at a possibly high-level manipulation of the network.
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