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Shido Token Plunges 85% After Exploit
The token for the layer-1 blockchain Shido has experienced a significant drop of 85% following an exploit on the project’s Ethereum-based staking contract. The exploit was identified by blockchain security firm PeckShield, which uncovered that the attacker successfully transferred the blockchain’s Ethereum staking contract to another address.
Attacker’s Actions
The new owner of the staking contract upgraded it with a concealed function that allowed the withdrawal of staked tokens. This led to a sudden transfer of ownership to a specific address, followed by the withdrawal of over 4.3 billion $SHIDO tokens.
Market Impact
As a result of the exploit, Shido’s trading price plummeted to $0.00141, marking a decline of more than 82% within a single day. The attacker’s actions affected nearly half of the total circulating token supply, valued at roughly $35 million.
Cryptocurrency Community Concerns
The incident sparked concerns within the cryptocurrency community, shedding light on the vulnerabilities of blockchain projects to exploits. On-chain researcher ZachXBT further investigated the matter and revealed that the exploit’s funding originated from cryptocurrencies bridged through Layerswap and Arbitrum protocols.
Web3 Exploits Trend
The exploit on Shido follows a recent trend of exploits within the Web3 space. Serenity Shield project and other platforms have also faced theft and hacking incidents, resulting in substantial losses for the respective projects.
Ian is a cryptocurrency enthusiast blending humor with professionalism. With an engineering background and a storyteller's heart, he simplifies the blockchain world with sharp analysis and a touch of wit. At Cryptowire, he brings his unique perspective to make digital financial innovation accessible to all.
