After an exploit incident, the layer 1 blockchain’s token, Shido, dropped by up to 94% in less than 30 minutes.
PeckShield, a blockchain security startup, raised light to the huge reduction in a post on February 29. In a subsequent update, the firm described how an attacker moved the Ethereum staking contract of the blockchain to a different address.
PeckShield said that the attacker had withdrawn over 4.3 billion Shido tokens, accounting for roughly half of the total circulating token supply of nearly 9 billion, according to CoinGecko data.
Subsequently, the contract’s new owner modified it with a hidden feature that allows staked token withdrawals.
Prior to the price drop, these tokens were worth around $35 million. Furthermore, user “Wazz” claimed that the exploiter funded the attack across many bridges but was unable to trace the stolen funds any further. They recommended against purchasing Shido tokens because the attacker still had them.