Solana price has responded to new reports that one of its DeFi protocols was hacked and over $117 million stolen by dropping by 4 per cent in today’s trading session. The report points to the negligence by the team of a known exploit that had been shared on their discord servers in March.
According to a report compiled by Certik Alert on their Twitter feed, the attackers manipulated the price of MNGO, the Mango’s native token, which allowed them to borrow more against the exploited collateral. They moved the token’s price from its real value of $0.038 to $0.91 and used the new price as collateral for borrowing up to $117 million.
Responding to the reports, the Mango platform indicated they were aware of the attack and were investigating the cybersecurity compromise. They also indicated they were working on ways to recover the money and had disabled deposits from the front end as a precaution.
Although it was not Solana itself that was hit by the cybersecurity issue, the platform has suffered its own myriad of challenges this year, including over ten outages. Although the platform has outlined intent to remedy the problem, the recent cybersecurity compromise of its DeFi protocol puts it into a peculiar position and might see consumer sentiments towards the project shifting.
Solana Price Prediction
The Solana price is down by 4 per cent in today’s trading session. The drop, which is partly due to the latest revelation the platform was compromised and over $100 million was stolen, has been an extension of a weakening cryptocurrency whose year-to-date value shows a drop of over 80 per cent.
Looking at the chart below, we can see Solana’s price has traded within a narrow price range of between $28 and $35 for more than two weeks. The chart also shows that all indications point to a weakening momentum and volatility of the crypto, which has not trended for more than two weeks. Therefore, I expect the choppy markets to continue. My analysis will, however, be invalidated by prices going above or below the current price range of $28 and $35, which has lasted for more than two weeks.