The ZK token of ZKsync saw a significant drop of over 18%. It fell from $0.047 to below $0.04 in just one hour. This decline happened after an attacker exploited a compromised admin account and stole around $5 million worth of unclaimed tokens from the project’s airdrop contract.
The ZKsync security team confirmed that the admin key linked to the airdrop contract was compromised. However, they assured users that this incident was isolated and did not impact the main protocol or the ZK token contract. They emphasized that all user funds remain safe and secure.
Despite the limited nature of the security breach, it caused a quick sell-off of the token, leading to a sharp price drop. In response to the incident, ZKsync has started an internal investigation and plans to provide a complete update later today.
This incident is part of a larger trend, as several altcoins have recently faced sudden price declines. For example, just yesterday, the IP token of Story Protocol declined by over 20%.
Judith Faith
Judith Faith has been writing about cryptocurrencies and blockchain technology for over five years. She is well versed in the industry and has an extensive network of industry contacts. She is also a frequent contributor to various cryptocurrency publications. With her vast knowledge and experience, she is able to provide insightful and valuable content to her readers. Judith is also an active investor in the cryptocurrency space and has a vested interest in the success of the industry.
