August Hack Prompts IDO
Cypher, the Solana-based decentralized exchange, announced on Aug. 23 that it would initiate the most fair token launch in Solana’s history. The launch aims to compensate users who suffered losses during the exchange’s hack on Aug. 7.
- The token sale will involve redeeming assets held in the Cypher protocol through associated wallets.
- The funds raised from the token launch will be used for protocol development, audits, and establishing a protocol treasury.
- A debt token will be airdropped to users affected by the hack.
Centralized Exchanges Froze $600K in Stolen Assets
After the hack, where the hacker exploited Cypher’s primary contract, over 15,400 SOL and nearly 150,000 USDC stablecoins were stolen. However, Cypher revealed that centralized exchanges have frozen digital assets worth $600,000. Recovery of these funds depends on cooperation from the exchanges and the issuance of seizure warrants by law enforcement.
In an illustration shared by Cypher, the token allocation breakdown is as follows:
- General public: 45.5%
- Cypher team: 23%
- Investors: 10.9%
- Advisors: 1.2%
Hot Take
Cypher’s commitment to compensating affected users through a fair token launch demonstrates their dedication to rectifying the consequences of the hack. The freeze of stolen assets by centralized exchanges provides hope for potential recovery, but cooperation and legal intervention are crucial for success. The token allocation breakdown ensures a significant share for the general public, aligning with the goal of fairness. Overall, this proactive response from Cypher sets a positive example for the crypto community to address security breaches and prioritize user protection.
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