Solana (SOL) Price Drop Due To Exploit; Time To Buy?

Solana (SOL) Price News: A Decentralized Finance (DeFi) protocol on Solana blockchain experienced an exploit that drained as many as $2 million in user assets. According to reports, owner authority was overtaken by attacker on the Raydium Protocol. Meanwhile, this led to a sharp fall in the Solana (SOL) token price. This comes in the wake of huge losses the cryptocurrency faced after the FTX liquidity crisis emerged.

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Exploiter Took Over Authority

The crypto community reported on Twitter that the attacker’s account received thousands of Solana tokens following the exploit. The Solana attack comes at the back of several instances of blockchain network halts for many hours. In June 2022, the Solana network halted block production, leading to several hours of outage. It was ninth such time when the blockchain witnessed a halt. Raydium confirmed the attack saying,

“An exploit on Raydium is being investigated that affected liquidity pools. Details to follow as more is known. Initial understanding is owner authority was overtaken by attacker, but authority has been halted on AMM & farm programs for now.”

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As of writing, SOL token price stands at $12.84, down 7.86% in the last 24 hours, according to price tracking platform CoinMarketCap. Among the tokens that were transferred by the exploiter include $USDC, $SOL, $ZBC and $UXP.

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Decreasing Social Activity For SOL token

Earlier, reports based on technical indicators suggested that the SOL token was about to breach the $15 level. The token reached a weekly high of $14.85 on Wednesday, before following a downward curve since. Meanwhile, latest data suggests that the Solana community activity on social platforms has been on a downward curve in the last six months.

Anvesh reports major developments around crypto adoption and trading opportunities. Having been associated with the industry since 2016, he is now a strong advocate of decentralized technologies. Anvesh is currently based in India. Follow Anvesh on Twitter at @AnveshReddyBTC and reach him out at [email protected]

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.