Shido token experiences a drastic 90% decline following an exploit in the Ethereum staking contract.
The value of Shido, a layer-1 blockchain, has plummeted by more than 90% in just 30 minutes following a security breach. The breach was first reported by blockchain security firm PeckShield on Feb. 29 via a post on social media platform X. PeckShield’s analysis revealed that the exploit involved the unauthorized transfer of Shido’s Ethereum staking contract to a different address. The new owner then modified the contract to enable the withdrawal of staked tokens. PeckShield found that the exploiter managed to extract over 4.3 billion Shido tokens, almost half of the circulating supply, valued at around $35 million. On-chain researcher ZachXBT identified the exploiter’s address and discovered the real identity behind the wallet that funded the exploit. However, it seems that the funding wallet itself was compromised, as its assets were unexpectedly transferred prior to funding the exploiter. Shido, which operates on a proof-of-stake consensus mechanism, has not yet launched its mainnet. The breach is part of a larger trend of crypto-related security incidents, with over 600 hacks in the past year resulting in losses exceeding $2.1 billion. Despite a decrease in losses compared to the previous year, 2023 has already seen 30 attacks in January alone, with losses totaling $182.5 million. February has also seen significant security breaches in the crypto space, including a $290 million theft from PlayDapp and losses due to wallet breaches and phishing scams.
