Shido Token Plummets 85% Following Exploit on Ethereum Staking Contract
The token for the layer-1 blockchain Shido has experienced a significant drop of 85% after its Ethereum-based staking contract was exploited. The exploit was discovered by blockchain security firm PeckShield, who found that the attacker had successfully transferred the contract to another address and upgraded it with a hidden function that allowed for the withdrawal of staked tokens. As a result, Shido’s token is currently trading at $0.00141, down more than 82% in just one day.
Attacker Withdraws Half of Shido’s Circulating Supply
The attacker managed to withdraw over 4.3 billion Shido tokens, which accounted for nearly half of the total circulating supply of approximately 9 billion tokens. This amounted to a market value of around $35 million at the time of the exploit. The incident has raised concerns within the cryptocurrency community and highlighted the vulnerability of blockchain projects to such exploits.
Pseudonymous on-chain researcher ZachXBT further investigated the matter and discovered that the exploiter’s address had been funded through cryptocurrencies bridged from Layerswap and Arbitrum. Additionally, ZachXBT claimed to have uncovered the real identity of the wallet owner responsible for funding the exploiter. However, it appeared that even the wallet owner had fallen victim to a hack, as their assets were transferred prior to funding the exploiter.
Exploits Remain Rampant in Web3
The exploit targeting Shido is just one example of many recent hacks in the Web3 space:
- Serenity Shield project fell victim to a theft that compromised its MetaMask wallet, resulting in a loss of around 6.9 million SERSH tokens worth $5.6 million.
- Radiant Capital experienced a $4.5 million loss due to an empty market exploit.
- Gamma Strategies fell victim to a flash loan attack, resulting in the hackers siphoning $6.1 million from their public-facing vaults.
Overall, these incidents highlight the ongoing vulnerability of Web3 projects to exploits and the need for enhanced security measures to protect users’ funds.
Hot Take: Shido Token Suffers Major Setback
The recent exploit on Shido’s Ethereum staking contract has had a significant impact on the project’s token value, causing it to plummet by 85%. This incident serves as a reminder of the risks associated with investing in cryptocurrencies and participating in blockchain projects. As the crypto industry continues to evolve, it is crucial for developers and users to prioritize security and implement robust measures to prevent such exploits. While these incidents may shake investor confidence in certain projects, they also serve as valuable lessons for the entire ecosystem to improve security practices and protect against future attacks.
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