RAY Fails to Recover After Hacker Drains Decentralized Exchange for $2.2 Million

The token is trading at $0.154, which is just 3% higher than the $0.149 it reached on Friday.

RAY token fails to recover after Raydium hack
  • Solana-based decentralized exchange Raydium’s native token RAY is trading at $0.154, just 3% higher than it did on Friday.
  • Before the hack that saw $2.2 million drained from Raydium, RAY traded as high as $0.214.
  • RAY is down 99% from its all-time high of $16.83.
  • An unidentified hacker attacked Raydium on Friday using one of the protocol owner’s private keys.

RAY, the native token of Solana-based decentralized exchange Raydium, has failed to recover after it was dumped on the news that the exchange was hacked on Friday.

The token is currently trading at $0.154, a 3% increase from its low of $0.149 on Friday, according to data from CoinGecko. Before the hack, RAY traded as high as $0.214.

RAY is down 99% from an all-time high of $16.83, which it reached in September 2021.

Raydium’s total value locked (TVL) was also dumped on the news. It went from almost $48 million to around $32 million, a 34% drawdown, according to data from DefiLlama. It plummeted even harder when FTX crumbled from $112 million to $50 million.

$2.2 Million Hack

Raydium’s token was dumped following the news that, on Friday, an unidentified hacker attacked the exchange and stole $2.2 million worth of tokens.

The hacker drained several Raydium liquidity pools and transferred tokens like wrapped USDC, wrapped ETH, and others. SOL comprised $1.6 million – or 72% – of the stolen funds.

While the hacker has yet to be identified, it seems like they used one of the protocol owner’s private keys to hack the exchange. However, it’s unknown how they obtained access to them.

Raydium is one of the most trusted and respected decentralized exchanges on Solana. However, some protocols and liquidity providers sounded the alarm bell after the news broke. 

For example, PRISM, a swap aggregator on Solana, announced that it has emptied its PRISM/USDC liquidity pool and encouraged others to do the same. The move is justifiable, especially since the method the hacker gained access to the admin’s private keys remains unknown.

On the Flipside

  • It’s still unclear who’s behind the attack.
  • The hacker might still contact Raydium and negotiate a deal.
  • Most alternative tokens are down 90-99% from all-time highs this year.

Why You Should Care

Raydium is one of the last places left on Solana to trade. The fact that it got hacked and that the hacker used one of the protocol owner’s private keys to do so raises multiple questions. Users should be extra careful when choosing where to hold their assets.

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Arturas Skur

Arturas Skur is a cryptocurrency news reporter at DailyCoin who covers Web 3.0 domains, DeFi, and Ethereum Layer-2s. With over five years of experience in journalism and public relations, Arturas brings his critical thinking and analytical abilities to deliver insightful news stories. In his free time, he enjoys hiking, playing with his dog, and reading.