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Solana’s NFT bear meets a $100M DeFi hack- what’s next?

12 Oct, 20222 min readNFT
Solana’s NFT bear meets a $100M DeFi hack- what’s next?

Solana [SOL]‘s journey in the cryptocurrency market has been nothing short of a fairy tale with every big player supporting the ecosystem in 2021.

Although in 2022, SOL witnessed a few ‘haunted‘ twists in this tale. From hacks to price corrections to network outages, the list can go on and on.

Here’s AMBCrypto’s Price Prediction for Solana for 2022-2023

Fairy tale gone wrong?

Solana’s native token, SOL, suffered yet another price correction as it consolidated under the $35 level mark on CoinMarketCap. At press time, it stood shy of the $32 mark as it continued to see red flags across various playgrounds.

On the other hand, the Metaplex Foundation, which oversees Solana’s Metaplex NFT protocol, launched an airdrop of its MPLX token for Solana NFT creators. But, the Metaplex token plunged by around 70%. Well, that wasn’t the only blow.

According to OtterSec, a blockchain audit platform, Mango, the DeFi project on Solana, was hacked. The attackers obtained a large number of loans from the Mango treasury by manipulating Mango’s collateral, resulting in a potential loss of more than $100 million.

@mangomarkets was just drained for over $100M. 🧵 — OtterSec (@osec_io) October 11, 2022

The alleged attacker temporarily spiked up the collateral value and then took out massive loans from the Mango treasury. The victim’s team did acknowledge the same, and later tweeted,

“We are currently investigating an incident where a hacker was able to drain funds from Mango via an oracle price manipulation. We will be disabling deposits on the front end as a precaution.”

But the damage was already done. Due to news of the exploit, the price of the platforms’ MNGO token fell by around 52% in the last 24 hours.

Looking out for…

Needless to say, given the SOL connection, Solana too suffered a few censures from the community.

SOL’s performance in the last seven days was mostly in agreement with the bears. Additionally, SOL’s volume decreased considerably on 8 October, which was a negative signal pushing SOL’s price to new lows.

Furthermore, SOL’s condition could go worse if the selling pressure magnifies.

But again, according to DeFiLama, SOL was also among the top 10 chains by TVL, which could be a green flag for the blockchain in these testing times.

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