Shiba Inu’s Layer-2 Network Incident
The recent incident involving Shiba Inu’s Layer-2 network, Shibarium, has led to a significant downturn in the price of the cryptocurrency SHIB. Following a sophisticated security breach, SHIB’s value tumbled from approximately $0.0000142, settling around $0.0000138. This decline wiped out most profits the token had achieved earlier in the week.
Details of the Security Breach
Investigations revealed that the attackers managed to compromise 10 out of 12 validator keys through an exploit in the Shibarium bridge. They absconded with assets totaling around $2.4 million, which included stolen funds like 224.57 ETH (approximately $1 million) and 92.6 billion SHIB (valued at about $1.3 million). These funds were then utilized to acquire 4.6 million BONE tokens, allowing the hackers temporary control over the validator system to implement malicious activities.
Market Reaction and Price Movement
In immediate response to the attack, SHIB’s price plunged, with current trading hovering between $0.0000135 and $0.0000137. This range represents a precarious support level that has persisted since late August. Should SHIB breach this threshold, the subsequent target for traders would be $0.0000130, a fall that could dismantle the late-summer recovery and provoke further downward movement in the asset’s value.
Community Sentiment and Future Outlook
As the market absorbs the fallout from the breach, signals indicate that SHIB’s community remains jittery about security threats, evidenced by the lack of willingness to buy the dip after $2.4 million in assets were confirmed stolen.
BONE, which serves as the governance and gas token for Shibarium, also experienced volatility post-exploit, initially surging by 54% before suffering a 46% decline, reflecting the broader market’s reaction to the hack. The potential for further negative repercussions for SHIB looms unless developers swiftly demonstrate the implementation of effective security measures. Without restored confidence, SHIB’s vulnerable support may not withstand additional pressure, leading to potential new lows, while BONE continues to face heavy trading as investors grapple with their eroding trust in the platform.
