The shares of companies in the cryptocurrency and
blockchain technology sector dropped on Tuesday after the recent crypto exploit involving Curve Finance caused
the price of Bitcoin to drop to a six-week low. The shares of
the publicly listed crypto mining companies were equally affected.
Coinbase was down 8% at the time of publication, while the shares of Bitfarms have dropped 6% on the daily
chart. Similarly, Riot Platforms, Marathon Digital, and the Canadian-listed
Hurt 8 have declined 5%, 7%, and 8%, respectively.
Besides that, Bitcoin is down 1.5%, according to CoinmarketCap.
Curve Finance, a
decentralized finance (DeFi) platform for stablecoins, was hacked
during the weekend through
a vulnerability in its smart contracts programming language, Vyper. Following the exploit,
the DeFi platform’s native token CRV experienced heightened volatility.
Additionally, Upbit, a South Korean cryptocurrency exchange, temporarily
suspended deposits and withdrawals in CRV.
According to the
cryptocurrency exchange Huobi, the amount believed to have been stolen from
Curve is estimated at USD $52 million. The exploit arrived when cryptocurrency
platforms are experiencing security challenges due to hacks and exploits, exit
scams, and attacks on flash loans.
reported that hackers stole
USD $313 million through
hacks and different kinds of malicious activities during the second
quarter of the year. Additionally, in the first quarter of the year, the amount
lost was USD $320 million.
Impact of Crypto Hacks
In July, crypto hacks
and exploits reached the highest
level year-to-date at
USD $303 million. The funds lost in July to exploits, exit scams, and attacks
on flash loans amounted to USD $285 million, USD $8.7 million, and USD $8.6
According to the
security company Certik, the blockchain bridging platform, Multichain, reported
the highest amount of losses worth USD $125 million from exploits in July. The
highest loss to exit scams was reported on Kannagi Finance at USD $1.9
million, while Conic Finance had the highest loss of USD $3.2 million from
attacks on flash loans .
shares of crypto-related stocks have also been affected by the ongoing
litigation in the US against the top cryptocurrency exchanges, Binance and Coinbase, Reuters reported. Additionally, the hike of interest rates by the
Federal Reserve has equally affected the digital assets space.
This article was written by Jared Kirui at www.financemagnates.com.