- The Shido token has plummeted to extreme lows.
- The development followed an exploit.
- The Shido team has since confirmed the news.
The native token for layer-1 blockchain Shido plummeted to extreme lows on Thursday following a massive exploit on the project’s Ethereum-based staking contract.
On February 29, blockchain security firm PeckShield alerted the Shido project to a “sudden owner transfer” transaction. The new owner immediately upgraded the StakingV4Proxy contract with a hidden withdrawToken() function and drained all the Shido tokens.
Shido Token Plummets
After the attack, Shido lost over 80% of its value, plunging from $0.008 to $0.0003898 within five minutes. As of press time, the token had lost 78.11% in the law 24 hours, and the price had slightly recovered to $0.0017, according to CoinMarketCap data.
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Following the development, the Shido team took to X (Twitter) and confirmed the news.
“Shido is aware of an exploit that caused our staking platform to be compromised. We are in the process of creating a solution that is best for everyone.” The team wrote.
The project further urged all protocol users to check its official website to see whether they can receive a compensatory fund. While the project didn’t mention the amount of tokens stolen, PeckShield estimated that the attack resulted in the loss of 4,353,473,223.864904 Shido, nearly half of the token’s circulating supply, according to CoinGecko data.
Before the price plunge, the tokens were worth about $35 million.
According to popular blockchain detective ZachXBT, the exploiter address was funded via Across on Arbitrum, which received funds through Layerswap. The Shido team had not issued any further update on the matter at press time.
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