The post Safemoon Network Exploited, $8.9 Million Lost – Here’s Complete Story appeared first on Coinpedia Fintech News
On March 28, Safemoon Network experienced an attack on its BNB liquidity pool, resulting in a loss of approximately $8.9 million. The attack exploited a faulty smart contract design that allowed any user to burn tokens from any address. The attacker siphoned SFM tokens from the Safemoon-WBNB liquidity pool, artificially raising the SFM price, and sold them into the same liquidity pool at an inflated rate, wiping out the remaining WBNB.
SFM Price Dips and Stabilizes
Following the attack, the SFM token price dropped by up to 40% in the last 24 hours but has since stabilized. Coingecko’s latest market data shows that SFM traded at around $0.0001849, down by approximately 20% during the early London market. Despite the dip, the Safemoon (SFM) still has a market capitalization of about $106,958,984 and a 24-hour traded volume of approximately $1.1 million.
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According to John Karony, CEO at Safemoon, the network’s decentralized exchange (DEX) was unaffected by the recent attack. Additionally, Karony stated that the vulnerability had been patched, and the SafeMoon Wallet is safe and secured by Orbital Shield.
Most importantly, Karony assured Safemoon users that their tokens are safe as other liquidity pools were not affected.
The attack on Safemoon’s BNB liquidity pool was, however, a massive blow to an ecosystem that is down over 94 percent from its ATH. Notably, SafeMoon V1 migrated to SafeMoon V2 in December 2021 with the same original supply consolidated at a 1:1000 ratio. Combined with token burns, the Safemoon army hopes the SFM price will eventually take the ride to the moon.