Shido Token Price Crash: 94% Plunge in Value due to Exploitation of Ethereum Staking Contract, Shido token recovery
The Shido token, associated with the layer-1 blockchain Shido, has suffered a significant setback. The Shido token price crash saw a staggering 94% drop in just 30 minutes. The significant drop in price was attributed to an exploit in its Ethereum staking contract. This information was released by Shido blockchain security company PeckShield. Peckshield’s report was published on February 29. This incident resulted in the unauthorized transfer of billions of shadow tokens. This transfer forms a significant part of its circulation supply. This incident has raised concerns about security vulnerabilities in the crypto space. These concerns remain despite ongoing efforts to enhance security measures. Read this post on ‘Best Money Market Today’ carefully to know this information in detail.
Shido token price crashes 94% – What happened?
Blockchain security firm PeckShield has identified an exploit in Shido’s Ethereum based staking contract. They reported that the attacker successfully transferred the contract to another address. The new owner then upgraded the contract with a hidden function. This secret function allows staking Shido token recovery. The attacker successfully withdrew 4.3 billion Shido tokens. This amount is equal to about half of the circulating supply. The total value of these tokens was estimated to be approximately $35 million. The rapid and significant price drop underscores the potential risks associated with investing in the projects. These risks are especially pronounced when smart contract exploit vulnerabilities are present.
Hi @ShidoGlobal There is a sudden owner transfer to 0x1982. The new owner immediately upgrades the StakingV4Proxy contract with a hidden withdrawToken() function. This hidden function is then called to withdraw all 4,353,473,223.864904 $SHIDO.
— PeckShield Inc. (@peckshield) February 29, 2024
Here are related txs:
– owner… https://t.co/TZ6oMDGwMG pic.twitter.com/VGZtyg9PEf
Read This: Top 10 Stablecoins in 2024: A Guide for Investors
Why did the Shido token price drop?
The Shido Token price has dropped. The drop was caused by the exploitation of the Ethereum staking contract. The attacker manipulated contracts and changed strategy. This manipulation was accompanied by the withdrawal of a significant portion of the circulating tokens. The result of the Shido token price crash was a massive sell-off in the market. Investors react quickly to security breaches and potential losses of funds. They quickly separated from Shido, making decisions prompted by the situation that arose. This massive investment led to a sharp decline in Shido’s market value. The incident underscores the importance of strong security measures in blockchain projects. It also highlights the significant impact of vulnerabilities on investor confidence.
Is it safe to invest in Shido after the hack?
After the Shido token exploit, caution is advised. After the Shido hack, the question that has arisen in everyone’s mind is, ‘Is Shido token safe?’ In particular, caution is advised against investing in Shido. The security breach exposed vulnerabilities in the project’s infrastructure. A comprehensive security audit is required to assess and address these vulnerabilities. Until such audits and remedial measures are implemented, potential investors should exercise caution. The Shido team announced efforts to secure the protocol and investigate the incident. Market participants should wait for a transparent solution. Additionally, they should look for enhanced security measures. These steps are crucial before considering Shido as a viable investment option.
$SHIDO exploited?https://t.co/JKa1jC14aR
— kinnif 🟪 (@0xkinnif) February 29, 2024
staking contract was upgraded and exploiter withdrew all $SHIDO pic.twitter.com/jNT4aMa2WY
Read This: Bitcoin Halving in April 2024 & Price Predictions
Shido token price prediction: Will it recover from the crash?
Shadow token recovery from a significant crash depends on a few factors. First, it depends on the response efficiency of the protocol for exploitation. Second, it relies on subsequent steps to strengthen security within the project. The transparency of communication from the Shido team is crucial. Additionally, a quick and comprehensive security audit is required. These steps will be important in rebuilding investor confidence. However, predicting the exact timeline and extent of recovery after the Shido token price crash remains challenging. Shido token price prediction depends on the successful implementation of remedial actions. Additionally, it depends on the overall sentiment of the crypto market.
What are other cryptocurrencies similar to Shido that are less vulnerable to exploits?
When it comes to Shido token future, investors looking for alternatives have several considerations. First, they may consider cryptocurrencies with a proven track record of security. Second, those who have robust smart contract audits deserve their attention. Established projects like Ethereum have implemented strict security measures. Binance Smart Chain is another example that prioritizes security. Additionally, Polkadot has gone through extensive auditing processes, further enhancing its credibility. Additionally, decentralized finance (DeFi) platforms have attracted attention for their secure operations. Aave is a platform known for its history of safe operations. Compound, another notable DeFi platform, also has a track record of reliability and security. It is most important to conduct thorough research on a project’s safety practices. Additionally, examining its audit history provides valuable insight into its resilience against vulnerabilities. Valuing community trust leads investors to less risky and more established cryptocurrency options.
