Been a while I heard about an exploit, it used to be during the Bull season that we hear lots of projects complain about getting exploited especially by hackers. The last exploit we heard about was from Binance, and it was a huge one, the Binance team took that blow really well, as they handled it pretty good. The latest project to get exploited is the skyward token. The most ironic thing about this exploits is how unknown this tokens are until they get exploited. Because, I have never seen or heard about the skyward token until today it got exploited.
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Appètent my, skyward is a token on the NEAR blockchain, that got drained off 95% of its value after the smart contract got exploited by hackers. The smart contract was exploited quite a good amount of money, about $3 Million, I guess the token wasn’t among the top 100 because even if $3 Million is good amount of money, it’s too small to crash the value of a token down 95%. Except the token is a micro token with low liquidity, turns out it is. Just as people are looking for ways to make life easier and better through coding and other means, malicious people especially hackers are also creating new ways to scam people off their hard earned money.
They were able to manipulate the smart contract by withdrawing multiple times from the Near decentralized exchange platform. Which started with them buying the token at first then swapping it from the Skyward token to the NEAR coin which in a way gave them more NEAR than they were supposed to receive. So imagine if this way, they bought the token, swapped it for NEAR, but due to the fact that they exploited the contract, the swapping gave them a lot of NEAR than the token is worth.
When this was noticed, the dev team were alerted, this notification is some times usually done over Twitter posting, this will then spark fear causing people to dump their tokens, hence the reason the time dropped 95% from a whopping $13 to $0.6. What a bad day for the token holders, I wonder how they are going to recover from this.
