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KyberSwap Hack Causes $50 Million Loss — KNC Token Dips 6% Will it Go Down Further?

Last Updated November 23, 2023 3:18 PM
Nikola Lazic
Last Updated November 23, 2023 3:18 PM

Key Takeaways

  • KyberSwap has suffered a $50 Million Multi-Chain Hack.
  • KyberSwap’s TVL dropped from $87M to $8M.
  • KNC price dropped 7.6%, with further decline anticipated.

The decentralized exchange KyberSwap has joined the list of DeFi protocols compromised by hackers. Reports emerged Wednesday night, November 22, detailing a multi-chain exploit that drained approximately $50 million from KyberSwap.

Despite its previous success in evading cyber threats, KyberSwap’s security was finally breached, marking a significant incident in its operational history. 

The hack involved stolen assets from chains like Base, Polygon, and Arbitrum. In response, users have been advised to withdraw their tokens and revoke protocol permissions.

The price of the KNC – Kyber Networks native token has fallen by 7.6%, but this event might negatively impact its price in the following period. 

KyberSwap TVL Plummets

The Kyber Network team swiftly confirmed the breach, pinpointing the KyberSwap Elastic platform as the compromised area. They urged users to withdraw funds as a safety measure, promising regular updates during their ongoing investigation.

New all-time low
TVL plummeted

This hacking incident has significantly impacted KyberSwap’s Total Value Locked (TVL), which plummeted from over $87 million to around $8 million, according to DeFiLlama data 

KNC Price Analysis 

The price of KNC has been in a horizontal range since it fell to $0.45 for the first time on December 31, 2022. It impulsively made a significant recovery to nearly $1, were it encountered resistance. 

KNC likely to fall down further
KNC could face more downside

 

These were the horizontal range bounds later established with more interaction, and the last one was its November 11 high of $0.91. As the price returned inside the resistance zone, it experienced a hard rejection, causing a downturn of 23% measured to its current levels. 

The last uptrend from September 11 is showing a five-wave pattern, meaning it ended on November 11. It formed an ascending support, which is currently being tested again, but considering the previous factors, it will likely be broken. 

The next significant support to the downside is at 0.618 Fibonacci retracement level at $0.58 and a logical target for the current descending move. That’s another 16% decrease from the current level of $0.71, but even more downside can be seen after.

In all, the price of KNC doesn’t appear to have the strength to break the $1 area, and now, with these fundamental developments, it could be sent into a downtrend for another bear market low below $0.45. 

Disclaimer

Please note that the contents of this article are not financial or investing advice. The information provided in this article is the author’s opinion only and should not be considered as offering trading or investing recommendations. We do not make any warranties about the completeness, reliability and accuracy of this information. The cryptocurrency market suffers from high volatility and occasional arbitrary movements. Any investor, trader, or regular crypto users should research multiple viewpoints and be familiar with all local regulations before committing to an investment.

 

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