Hacken's HAI Token Plunges 55%
Hacken's HAI Token Plunges 55% After Massive Unauthorized Mint
The Hacken [HAI] token experienced a significant price drop after approximately 251 million HAI tokens were unexpectedly minted on both Ethereum and BNB Chain. This event, likely resulting from a private key compromise affecting the deployer wallet, sent the price plummeting by 55%, from approximately $0.026 to $0.009.
The incident highlighted vulnerabilities within the Hacken ecosystem, particularly concerning the security of its deployer wallet. The rapid price drop also raised concerns about the overall market confidence in HAI and the robustness of its bid walls, which were unable to withstand the market pressure from this sudden influx of tokens.
Before the mint, HAI was already struggling, finding resistance at $0.026. This unexpected event pushed the Relative Strength Index (RSI) deep into oversold territory, indicating significant selling pressure.
Following the unauthorized minting, Hacken's developers swiftly responded, initiating an internal investigation and advising users to suspend all bridging activities. Despite these efforts, the market's reaction was swift and unforgiving. Exchange supply of HAI nearly doubled in a single day, surging from 10.36 million to 21.77 million.
On-Chain Data Reveals Market Weakness
On-chain data confirmed the severity of the situation. A net exchange flow of 64 million tokens, heavily weighted towards inflows, signified a dominance of sell-side pressure and a lack of strong buying support. This lack of absorption underscores a potentially fragile market foundation.
Source: TradingView (HAI/USDT)
Source: Santiment
Lessons Learned: Trust, Transparency, and Infrastructure
This incident serves as a stark reminder of the importance of robust security measures in the blockchain space. For Hacken, it's a critical lesson in strengthening its infrastructure and building greater trust with its community. For investors, this situation underscores the need for caution and due diligence when assessing projects.
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