The recent hack onFantom’s Multichain bridge, a bridge that traditionally enables the transaction of assets from one chain to another, has caused ripples throughout the entire cryptocurrency ecosystem. The dastardly act resulted in a gargantuan loss of cryptocurrencies, worth more than $126 million. In the subsequent 24 hours, the price of Fantom Coin plummeted by11% and continues to show signs of strain with a cumulative decline of 14% in the last week.
The fallout over this unfortunate event has taken a toll on the community’s confidence. Advisories implored holders to remove their assets from the tumultuous Fantom ecosystem, signaling a potential catastrophic mass exodus. This loss of user trust could entail a heavy blow against Fantom Coin (FTM), accelerating the selling pressure, noticeably shown by the dwindling relative strength index. Moreover, the 30-day moving average, following its downward trajectory, and the alarming simultaneous dip in the green support level continue to reflect unprecedented vulnerability.
To argue the case, alternatives abound for traders in search of promising investments. Thug Life Token (THUG), an ERC-20 meme coin, has been making waves in the pre-sale market, gaining traction for its strong potential. Having raked in over $600,000 in its pre-sale, the token, appealing to a broader demographic of rap and hip-hop communities, has emerged as an attractive investment.
Furthermore, its high level of decentralization, with the pre-sale allocated 70% of its total maximum supply of 4.20 billion THUG (a nod to the 4/20 culture), pulses an element of assurance and confidence among investors. Given that new investors have less than 10 days to participate in the pre-sale, there is a strong anticipation for a promising opening rally.
However, contrary to the bullish sentiments revolving around THUG, the tale of Fantom Coin exhibits a grave reminder of the security threats haunting the blockchain technology. The vulnerability of such a crucial bridge within the Fantom ecosystem put its adherence to safety under harsh light. In this volatile space, even robust systems may buckle under severe breaches, inhibiting the adoption and usage of blockchain technology.
In a nutshell, the anecdote of Fantom and Thug Life Token places a beacon on two poles of the spectrum. While some scramble to avert losses, others reside in the anticipation of high returns – such is, and may continue to be, the paradox of the cryptocurrency landscape.
It is of utmost importance to remember that investing in crypto is high-risk, and due diligence and informed risks are critical. Blockchain technology, although revolutionary, remains susceptible to exploitation. Secure bridges are the lifeblood of blockchain technology, ensuring the safe, smooth transaction of assets. A concrete, foolproof security framework will be paramount in steering blockchain technology towards a safe harbor.
Source: Cryptonews
