NewsletterHow Crypto Responded To DeFi Platform Mango Markets Hack
Within days from the Binance bridge exploit, the crypto community saw another incident with the Mango Markets hack on Wednesday. Blockchain security company OtterSec claimed earlier today that the DeFi hack led to a loss of over $100 million. Mango Markets said the hack to draining of funds from its platform via an oracle price manipulation. Also, the platform disabled deposits as a protective measure.
Mango Markets Exploit: What Went Wrong
Alerting the community of the hack, OtterSec said the attacker managed to manipulate the Mango collateral. “They temporarily spiked up their collateral value, and then took out massive loans from the Mango treasury.” The platform’s team said it was probing the whereabouts of the exploit. Mango Markets said in a tweet that it was disabling deposits on the front end. Initially, the team asked users not to deposit funds until the situation becomes clear.
“We are currently investigating an incident where a hacker was able to drain funds from Mango via an oracle price manipulation. We are taking steps to have third parties freeze funds in flight.”
Meanwhile, the platform’s governance token took a massive hit due to the DeFi hack today. The Mango token (MNGO) lost nearly half of its value since the news broke. As of writing, the token price stands at $0.02303, down 42.38% in the last 24 hours, according to price tracking platform CoinMarketCap. The token is currently ranked 540 based on its market capitalization.
Impact On Crypto Community
Back to back major crypto hacks could mean further negative sentiment among investors in near future. Last week, the Binance smart chain (BSC) network suffered an exploit on a cross-chain bridge, the BSC Token Hub. OtterSec felt the hacks often have large consequences for the community. “The surge in price caused over 4000 short liquidations across Mango Markets.”
Following the exploit, SOL price immediately dropped 2.30% before making a partial recovery thereafter. The price drop meant that SOL almost reached the monthly low level. As of writing, SOL price stands at $30.97, down 1.55% in the last 24 hours, according to CoinMarketCap.
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more… to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
Premium Partners
Delivered every day.
- Insights that move markets
- 100,000 active subscribers
Related Articles
- Why is the Crypto Market Down Today? BTC, ETH, XRP Lead Drop
- SEC Crypto Task Force Hosts Financial Privacy Roundtable Today: What to Expect
- Breaking: Kevin Warsh Now Favorite to Replace Powell After Hassett’s Fed Chair Bid Faces Pushback
- First Hyperliquid ETF Launch ‘Imminent’ as Bitwise Files Amended S-1 With SEC
- XRP News: Ripple’s RLUSD Eyes Wider Adoption as Stablecoin Expands to Coinbase’s L2 Base
- Bitcoin Price Weekly Forecast as Gold’s Surge Revives Inverse Correlation — Is $85K Next?
- Ethereum Price Risks $2,600 Drop Despite JPMorgan’s New Fund on its Network
- Analyst Confirm Pi Network Price Could Still Reach $1, Here’s When?
- Is Ethereum Price Set for a Rebound as a Prominent Whale Accumulates $119M After the Dip?
- XRP Spot ETF Records Nearly $1B Inflows While BTC and ETH Bleed- Is A XRP Price Reversal Ahead?
- Bitwise SOL ETF Records 33 Days of Nonstop Inflows- Is A Recovery to $150 Possible?
