- MKR’s price declined after a phishing attack caused a decline in sentiment.
Short positions taken against MKR surged.
As a researcher with experience in the cryptocurrency market, I find the recent phishing attack on MakerDAO (MKR) to be a concerning development for the token’s short-term prospects. The sudden sell-off of 3,657 MKR tokens caused by the attack has resulted in a significant price drop of 7%, which could lead to further selling and negative sentiment towards the token.
As a market analyst focusing on the stablecoin and decentralized finance (DeFi) sector, I’ve observed that MakerDAO [MKR] has held a prominent position within this space due to its innovative smart contract platform. Nevertheless, some unfolding developments could potentially bring about short-term challenges for MKR in the near future.
Gone phishing
An on-chain analysis account named Lookonchain reported a significant phishing incident that took place only 5 hours ago. In this occurrence, an unfortunate victim endured a substantial financial loss amounting to $11.1 million.
An intruder took advantage of the victim’s digital wallet, successfully stealing a substantial sum of cryptocurrencies.
Approximately $8.7 million worth of 3,657 MKR tokens and around $2.4 million worth of 2.56 million PT Ethena tokens were part of the total.
The attacker rapidly converted the stolen assets into cash by selling a significant amount of MKR tokens in the marketplace.
As a crypto investor, I’ve noticed a sudden sell-off of 3,657 MKR tokens in the market, leading to a substantial 7% price decrease for this cryptocurrency. Meanwhile, an attacker successfully swapped an impressive amount of 2.56 million PT Ethena tokens for approximately 689 ETH, equivalent to around $2.41 million.
A notable price decrease could significantly deter optimism towards MKR. Potential investors might be hesitant to keep a token that is prone to unexpected and significant value decreases.
The discovery of this exploit may cause apprehension and doubt among investors, prompting them to offload their MKR assets in an attempt to limit potential damages.
It’s plausible that this occurrence could lead to an increase in the total number of shares sold short for MKR. Given that the price of MKR has been dropping, some short sellers might view this as a favorable time to join the market, wagering that the downward trend will persist.
Short positions against MKR have already grown to 50.83% at the time of writing.
On-chain data shows signs of hope
As a researcher observing the data, I’ve noticed that Network Growth has significantly increased over the past few days. This expansion suggests that there is growing curiosity among new users towards the MKR token.
The Velocity also surged, indicating the heightened frequency of trading.
Many new investors are showing increased enthusiasm, indicating that they view the current price drop as a chance to acquire more MKR at reduced costs.
As a researcher studying the market trends, I can observe that MKR is showing signs of potential recovery. Currently, its price hovers around $2,420.47. If these positive tendencies persist, MKR could regain strength and head towards green territory in the future.
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2024-06-23 14:47