Hacking in the crypto market is not a new phenomenon. It is as old as the crypto market itself. Many platforms have either shut down their functions or lost billions of dollars due to hacking. The recent one is the Wintermute platform which lost more than 160 million dollars in hacking. On Tuesday night, the founder and top executive of the Wintermute firm confirmed the hacking in a series of tweets. Thus it became the latest firm that face hacking.
Will it have an impact on the overall market? What about Wintermute investors? Can this be recovered? Is there any solution to stop hacking? To answer these questions, we need to know about Wintermute and the nature of hacking.
What is Wintermute?
The Wintermute is a top crypto market marker providing liquidity over fifty exchanges. These exchanges include Binance, Coinbase, FTX, and Kraken, and decentralized exchanges like Dydx and Uniswap. This is one of the top decentralized crypto firms with millions of assets at its disposal. According to the platform executive, Evgeny Gaevoy, the firm trades more than 5 billion daily. So from this, you can guess how important this firm is to the crypto market.
The executive, Evgeny Gaevoy, shared the news about the hacking in a series of tweets. He writes that his firm has lost more than 160 million dollars in this hacking. However, he said that only the decentralized finance operation was hacked, and the centralized ones are still on their hold. These are not affected yet.
He said that the firm may not function properly for today, and they are doing their best to recover the site and the lost money. He is optimistic about the future of the firm and said that the firm is still solvent with “twice over that amount in equity left.” But what about those lenders that have given the firm loans?
Evgeny Gaevoy answers that the lenders will have their money whenever they want. The Wintermute will provide the loan’s money accordingly.
Impact on market
Seeing the amount, one will say that it would badly impact the overall market. However, there has not been any sell-out in Wintermute firm. In such a situation, you will always see a FOMO, due to which most people sell their assets. However, in this case, the market is safe, and there is a technical reason for that.
According to Evgeny Gaevoy, out of 90 assets that are hacked, only two of them have more than one million dollars, and none has more than 2.5 million dollars. Due to this, there has not been any major sell-out in the market. He further writes that the team will contact the affected people and will soon come out with a proper solution.
Other similar hacking
In recent months, there has been a spark in crypto hacking, due to which the market has been red throughout. Such things give rise to fear and uncertainty in the minds of investors. A month ago, more than 190 million dollars were hacked from messaging protocol firm Nomad. In April this year, one of the most popular firms, Axis, lost more than 600 million dollars in a hack. Additionally, Harmony’s horizon bridge lost 100 million dollars in similar hacking in June 2022.
The biggest and the most devastating hack was that of DeFi last year, in which the DeFi market was drained of 1.3 billion dollars. That is a huge amount of money that shook the DeFi market. These are worrisome states.
As mentioned above, hacking is not a new phenomenon, but the recent increase in it is produced uncertainty and fear in the market. One of the reasons for this red market for 12 to 13 months is hacking. The big whales now fear their money will be lost in vain if they invest it. Because even the most secure firms are not secure from hacking