The recent WazirX hack triggered a massive Shiba Inu, raising concerns for Shardeum’s locked token plan. With nearly $100 million worth of SHIB dump, the price of the meme coin plummeted, prompting widespread discussions on the implications.
Amidst the chaos regarding the hack, Shardeum’s plan to lock up a portion of its users’ crypto portfolios is in the limelight. It is to be noted that the platform is exploring options to unlock these tokens, such as creating new projects and airdropping them to users. However, in light of the recent hack, some community members are skeptical about the effectiveness of this approach.
Instead, prominent SHIB members like Lola are calling for Shardeum to consider acquiring Shiba Inu and airdropping it to its users instead. This, they argue, would not only help to mitigate the losses suffered by SHIB holders but also create a more robust ecosystem for both platforms.
Furthermore, some community members have suggested that multiple cryptocurrency exchanges and decentralized exchanges (DEXs) could help to reduce the supply of SHIB by burning a portion of their trading fees. This deflationary measure could help to increase the price of SHIB and, in turn, help WazirX customers recover some of their losses.
As per the latest reports, the WazirX exploiter has sold off a massive amount of SHIB, totaling 5.43 trillion tokens, in exchange for 26,535 ETH, approximately $92 million. Fans of the popular meme coin have raised concerns about the impact of the WazirX hacker’s actions on the market. However, the SHIB team has highlighted Wintermute’s crucial role in mitigating potential damage.
How Market Makers Stabilized Shiba Inu
By buying Shiba Inu from decentralized exchanges [DEX] and subsequently depositing it on centralized exchanges for arbitrage opportunities, market makers like Wintermute and others helped stabilize the price. This strategic intervention prevented a more severe price drop, demonstrating the effectiveness of such market mechanisms in maintaining equilibrium.
As for the latest development, it remains to be seen how Shardeum will respond to these suggestions. However, the WazirX hack has highlighted the risks associated with holding large amounts of cryptocurrency on exchanges and the importance of having robust security measures in place.