Why is popular cryptocurrency Solana crashing

livemint.com:

The world of cryptocurrency has faced another cyber attack and this time it would be Solana who is on the suffering side. The digital token Solana crashed on Wednesday as the decentralized system is reported to be a casualty of a multimillion dollars hack. Solana witnessed a selling pressure on exchanges after users reported about their funds getting drained without their knowledge from their “hot" wallets including Phantom, Slope, and TrustWallet. The issue is still ongoing. Solana is estimated to have witnessed a loss of $8 million.

On CoinMarketCap, Solana is trading at $39.37 down by 2.24%. The token's market cap is around $13.65 billion. The token has touched an intraday high and low of $42.33 and $38.28 respectively.

Solana is the ninth largest cryptocurrency currently following Cardona which is at eighth rank.

Compared to its all-time high of $260.06 in November last year, Solana has nosedived by nearly 85%.

Talking about the Solana hack, Sathvik Vishwanath, Co-Founder, and CEO of Unocoin said, "Solana is a new blockchain supported by a token of its own that works as the gas to confirm the transactions on that blockchain. There have been numerous hacks on the wallets supporting this token. A recent successful attempt drained away about 560M USD worth of Solana from various user wallets and this has sent shivers in the Solana ecosystem. A part of the reaction is the decreased prices of the token."

According to the PeckShieldAlert report, the widespread hack on Solana wallets is likely due to the supply chain issue exploited to steal/uncover user private keys behind affects wallets. So far, the loss is estimated to be $8 million, excluding one illiquid shitcoin (only has 30 holds & maybe mis-valued $570 million.

#Pe