Problems for Shiba Inu (SHIB)? A major exchange attack results in millions in losses

The SHIB price fell today, losing about 7% of its value at one point. It has since managed to erase some of the losses, but the tension remains as the entire market is currently in decline.

The main reason for the decline of Shiba Inu today

Today, the leading cryptocurrency exchange in India, WazirX, reported that one of its multisig wallets had been compromised. The loss amounted to more than 230 million dollars.

A cyber attack has occurred on one of our multisig wallets with a loss of over $230 million in funds. This wallet has been operated using Liminal’s digital asset custody services and wallet infrastructure since February 2023.

$100 million was in SHIB tokens, which seems to be the main reason for today’s drop.

Because of this, tokens listed on WazirX, including SHIB, BTC and even the stablecoin USDT, traded at a considerable discount to the INR compared to their global and even local prices. This indicates liquidity problems and increased selling pressure.

What’s next for the SHIB price?

As CryptoPotato reported today, despite the price drop, some other important metrics rose in stark contrast.

For example, the burn rate skyrocketed by 450%, which was likely caused by increased volatility. However, it causes more SHIB tokens to be taken out of circulation, which is ultimately a positive factor for the remaining coins, price-wise.

Meanwhile, the Shiba Inu whales are also shopping. According to IntoTheBlock, the aggregate daily volume of transactions over $100,000 soared to $900 million, representing an increase of 1800%.

Other metrics associated with the protocol’s Ethereum layer two scaling solution, Shibarium, are also on the rise.

All in all, Shiba Inu seems fundamentally unphased despite the turmoil caused by the WazirX fiasco. For more updates, check out our Shibarium News.

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