Native token of Elrond Network plunges 7% due to alleged exploit on Maiar DEX
Alright, here's my attempt to rewrite the article while incorporating some insightful enrichment data:
An Unveiled Exploit Puts the Maiar DEX on Hold, Leaving a Trail of $EGLD's Dramatic Dive
Let's dive into the latest drama in the cryptosphere, as the decentralized exchange (DEX) Maiar, nestled within the Elrond network, succumbs to a suspected exploit, causing a noteworthy 7% plunge in the value of Elrond's native token, $EGLD.
In case you missed the memo, the platform has been put under the wrench for some maintenance, while its native token MEX struggles to recover from a considerable blow—losing 90% of its value in a single day.
Beniamin Mincu, the fearless leader and CEO of Elrond, took to Twitter to disclose that the team is hot on the heels of some shady activities on the Maiar DEX. They vowed to keep the community updated after scrutinizing the situation.
A sharp-eyed Twitter kingpin named foudres.eth unmasked a gruesome tale in a detailed Twitter thread, unraveling the sinister events of the past 24 hours.
This gumshoe found three fishy wallets that unloaded a significant chunk of $EGLD, dicey as they were cooked up simultaneously and showered with funds from Binance. These wallets are said to have utilized the deploy mechanism to execute a smart contract.
Following the smart contract deployment, the wallet owners invoked the 'Withdraw' method, netting themselves over 1600k $EGLD tokens — their origins remain a mystery.
The three wallets garnered 800k, 400k, and 450k $EGLD respectively, before they started tumbling these tokens into the market. The strategy unfolded in waves—400k USDC, then back to unwrapped USDC on the ETH chain, and subsequently transferring them across.
This underhanded trio started unloading the $EGLD at 10:08 PM as a trial run, and an hour later, the coin dropped a whopping 92% in value, ultimately propelling Maiar into maintenance mode.
These determined villains were able to sell 951k $EGLD tokens and smoothly bridge 5M - 6M USDC before Maiar went into lockdown. Approximately 38k $EGLD found its way to Binance, while the remaining 10M USDC, 170k UTK and 180k EGLD remain within the wallets.
All the USDC snatched by the three wallets was redirected to a suspicious smart contract, hinting the possibility of some shady swaps on Uniswap V3.
foudres.eth's vigilant eyes also caught another dodgy wallet that acted as an arbitrage bot between DEX and CEX. This guerilla account garnered 700k USDC and latched onto EGLD at $57 for the first time and later at approximately $5. In a single move, this crafty wallet purchased 1000 EGLD tokens at an eye-watering $5433.
In total, this crafty bot bought 98,200 $EGLD at an average price of $5741, cashed out 70k $EGLD onto Binance and Kucoin wallets, while the remaining 30k is still stashed away in this pocket.
The good news? At least no user funds have been compromised as of yet, thanks to the Elrond team's responsive and timely measures while grappling with the suspicious activities. The community has lauded the team for their swift action.
CEO Mincu later reassured everyone, stating, "Identified the potential issue, and working on an emergency fix. Will update again once the fix is deployed."
Currently, the $EGLD token is trading at $71.94, and the MEX token hangs precariously at $0.00003735 at the time of writing.
On the flip side, the cryptoverse is thriving amidst regulatory strife, as shared in our article, DEX Volume Surge Amid SEC Crackdown!
Insightful Enrichment Data:
- Exploits and security breaches in DEXs or blockchain networks often stem from weak smart contracts or technical glitches, paving the way for significant financial losses due to stolen funds.
- A negative event, like an exploit, can cause market volatility and price drops in tokens, weakening investor confidence and trust in the affected platform or network.
- Increased regulatory oversight and security measures can stem from exploits, impacting the broader cryptocurrency market by shaping investor sentiment and regulatory frameworks.
- The apparent exploit in the Elrond's decentralized exchange (DEX), Maiar, caused a 7% plunge in $EGLD's value, highlighting the potential risks of weak smart contracts and technical glitches in DEXs or blockchain networks.
- Remarkable financial losses occurred due to the suspected exploit, as three wallets unloaded a significant chunk of $EGLD, netting themselves over 1600k tokens, leaving a mystery about their origins.
- FUD (Fear, Uncertainty, and Doubt) among investors is heightened with such incidents, affecting platforms like Maiar and network tokens such as $EGLD, demonstrating the significant impact of security breaches on investor confidence.
- In response to the increasing regulatory strife, the cryptocurrency market is witnessing a surge in DEX volume, as enforced security measures and improved regulations could reshape investor sentiment and regulatory frameworks in the long run.
