Shido Token Plummets 94% in Exploit, Investigation Underway

• Shido token crashed 94% in 30 minutes, dropping from $0.007985 to $0.0002967.
• The exploit targeted Shido’s Ethereum-based staking contract.

Shido, the layer-1 blockchain platform, witnessed a staggering 94% drop in its native token’s value within just 30 minutes, plunging from $0.007985 to $0.0002967. The tragic collapse came in the wake of a severe exploit detected in its Ethereum-based staking contract.

The security firm PeckShield raised the alarm on Thursday after identifying a suspicious “sudden owner transfer” transaction within Shido’s ecosystem. Subsequently, the new owner swiftly used an upgrade to the StakingV4Proxy contract, deploying a concealed withdrawToken function to drain off all available Shido tokens.

According to reports, the attacker withdrew a staggering 4.3 billion Shido tokens, amounting to nearly half of the total circulating supply valued at approximately $35 million before the exploit.

Shido’s Response to the Hack

In response to the crisis, Shido promptly initiated measures to address the breach, asserting their understanding of the technical complexities behind the exploit and fortifying defenses against potential future threats.

Further, an intensive investigation into the identity and motives of the hacker is underway. Additionally, Shido openly extends an invitation to the exploiter to engage in dialogue regarding a potential bounty arrangement.

Offering reassurance to affected users, Shido assured that all individuals who staked SHIDO would have their tokens fully restored.

At the time of writing, SHIDO has shown signs of recovery, trading at $0.003324 with a market cap of $27M. Remarkably, the daily trading volume for SHIDO surged by an unprecedented 1362%.