Shibu Inu Price Drops 10% after BitMart Hack

The price of Shiba Inu dropped after BitMart crypto exchange was hacked and almost $200 million was stolen over the weekend.

Shiba Inu (SHIB) could not start the new week with the expected rise. The popular altcoin project, which has been in a downward trend for a long time, failed to exceed the $0.000040 level. SHIB, which increased its price by 12 times to the level of $0.000088 in the great uptrend it caught, has lost 10% of its value from this peak point.

Price of Shiba Inu drops after BitMart hack

After the big drop on Saturday, a piece of news that negatively affected the crypto money market came from BitMart. PeckShield, one of the blockchain security companies, announced that the Cayman Islands-based high-volume crypto exchange had been attacked in a post on its corporate social media account. PeckShield announced that $100 million in tokens from the exchange's Ethereum hot wallet and $96 million from the BSC wallet were stolen by hackers.

In the data shared by the security company, it was learned that the highest amount of transferred token was Shiba Inu. According to the reports, 893 billion SHIB worth 33.4 million dollars were transferred by the attackers.

What caused BitMart hack?

The founder of the BitMart crypto exchange Sheldon Xia reported on the results of the initial investigation of the hack attack.

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BitMart has completed initial security checks and identified the affected assets. This security breach was caused by a stolen private key that compromised two of our hot wallets. Other assets on BitMart are safe. BitMart will use our own funding to cover the incident and compensate the users affected. We are also meeting with multiple project teams to confirm the most viable solutions, such as token swaps. User assets will not be harmed. Deposits and withdrawals will start gradually on December 7, 2021.” the CEO said.

Sia promised that BitMart will compensate the losses of victims from its own funds.

We are also working with many projects to find the most feasible solutions, including token swap. We are now making efforts to restore the full functionality of the exchange,” continued the founder.

Shiba Inu Community and Houbi show support

Following the hack, many stakeholders of the crypto market volunteered to support BitMart. Shiba Inu, one of the most active and largest communities in social media, also announced its support for BitMart on its Twitter account with 2 million followers yesterday.

While decentralization is the core of the Shiba Inu project, we want to show our support and support our friends at BitMart who are already working hard to fix the security incident that occurred yesterday. As we continue to work on potential security risks for ShibaSwap, we try to encourage our community to avoid risks by using secure tools in the crypto space.”

Along with the Shiba Inu community, the giant cryptocurrency exchange Huobi also announced that it will help BitMart. BitMart CEO has also announced that the deposit and withdrawal transactions, which were suspended yesterday, will gradually reopen tomorrow.

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