An NFT game token considered promising by the market plummeted from $530 to $1.41 in hours, which is a hurting 99% fall.
In recent months, the Illuvium (ILV) game became a target of desire for many NFT gamers for its well-constructed setting and interesting reward mechanism. But its gaming ecosystem involves other tokens, one of them being Escrowed Illuvium (sILV).
On January 4th, Illuvium announced that they had found a vulnerability in the staking contracts, and as such, the eDAO put a temporary pause on sILV minting. Illuvium team later said that the vulnerability has been fixed within the staking V2 contracts. According to the team, the attack vector was closed, and no funds were compromised.
But even after taking all protective measurements, Escrowed Illuvium suffered a hack; as a result, the token price of sILV fell from $530 to $1.41 in no time.
The native token of Illuvium (ILV) also felt the damaging effect of hacking falling more than 30%, currently trading on $848.
The Hacker was fast to perform his hacking before the Illuvium team upgraded the network; he could pocket 8000 sILV and 452 Ethereum.
Illuvium claims that the sILV pool was never an official Illuvium creation.
“Please DO NOT buy in the sILV pool. We have discovered a security flaw and are working to rescue the sILV pool. Attackers were able to steal some of the funds but not all of them as we executed a swap of our own.”
⚠️ Please DO NOT buy in the $sILV pool. We have discovered a security flaw and are working to rescue the $sILV pool. Attackers were able to steal some of the funds but not all of them as we executed a swap of our own. (1/3)
— Illuvium (@illuviumio) January 4, 2022
Illuvium further clarifies that once they get a snapshot of the actual owners of sILV, they will make the necessary reimbursements. The sILV pool was never an official one, but the team further noted that they are investigating the issue and will be providing updates as soon as possible.
Will The Token Recover?
With a frightening drop of 99.8%, sILV went from $530 to $1.41 in a few hours, with several users claiming that they lost all their money. Whether it’s going to recover or not from such a drastic fall will depend on the development team’s efforts to compensate everyone that got affected and ensure such events don’t happen again in the future. The community is now following the case closely and waiting for a detailed post-mortem of what happened, seeking transparency.
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