Why is popular cryptocurrency Solana crashing
Solana's system is reported to be a casualty of a multimillion dollars hack. The token witnessed a selling pressure on exchanges after users reported about their funds getting drained without their knowledge from their “hot” wallets including Phantom, Slope, and TrustWallet.
The world of cryptocurrency has faced another cyber attack and this time it would be Solana who is on the suffering side. The digital token Solana crashed on Wednesday as the decentralized system is reported to be a casualty of a multimillion dollars hack. Solana witnessed a selling pressure on exchanges after users reported about their funds getting drained without their knowledge from their “hot" wallets including Phantom, Slope, and TrustWallet. The issue is still ongoing. Solana is estimated to have witnessed a loss of $8 million.
Solana users have been reporting on Twitter about their funds being drained without their permission and knowledge.
Its not just Solana, Ethereum users too faced a similar issue.
PeckShieldAlert revealed that seems like before Solana Wallets got drained, a user's TrustWallet and Slope wallets have been compromised on both Solana and Ethereum.
Further, Prashant Kumar, founder, weTrade said, "Solana seems to be witnessing an ongoing hack in which hot wallets are being compromised. The initial signals point to compromised keys which are evident by the digital footprints which are apparently signed by the respective owners."
Kumar added, "One of the key things to learn through this is to ensure 100% privacy of the private keys and some users have started to move their coins to hardware wallets. Solana with the other cryptocurrencies have been generally moving upward for the last few weeks. However, the hacking news led to price erosion first but it has partly restored the lost value since then!"
Solana is the fastest blockchain in the world and the fastest growing ecosystem in crypto, with thousands of projects spanning DeFi, NFTs, Web3 and more. Headquartered in Switzerland, Solana Foundation official launched Solana in March 2020. Anatoly Yakovenko is the founder of Solana.
Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!