Mon. Dec 4th, 2023

The distrust regarding stablecoins grows as new events take the spotlight by highlighting the possible cracks that these types of value protection options present.

Vulnerability Leaves $1 Billion at Risk!

An attack on the Acala platform was recently announced, one of the main protocols built on top of the Polkadot blockchain which was born with the aim of offering a variety of financial applications capable of executing smart contracts, functionalities in the block chain and offering access to loans in stable currencies. Everything starts when a hacker was able to access over a billion dollars in AUSD, leaving the stability of the network at risk and directly affecting the value of AUSD that has been delinked from the dollar, ranging between $0.57 and $0.95 dollars at the time of writing this article. Binance CEO Changpeng Zhao tweeted confirmation of this. The Acala team could only say that the Horizon protocol was experiencing configuration issues and an emergency vote had been taken to stop all network activity and withdrawals.

Problems with stablecoins continue!

The strength that stablecoins can offer is once again called into question as The crypto market has witnessed repeated failures in the networks of these stable coins and that have caused the loss of parity with the dollar.

In May, the DeFi Terra protocol was unpegged from its peg to the dollar after a crypto market crash. which was mainly supported by the massive outflow of people towards other forms of investment.

In conclusion

According to experts, there is a possibility that the hacker exploited a vulnerability in the iBTC/aUSD system. The hacker may have exploited the vulnerability to drain USD. Acala officials quickly confirmed the problem on their official social media accounts and halted operations so they could fully investigate it.

Disclaimer: The information found on CryptoReport is that of the cited writers. It does not represent the opinions of Criptoinforma on whether to buy, sell or hold investments. You are advised to conduct your own research before making any investment decisions. Use the information provided at your own risk.

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By Farwa Raza

Farwa Raza is a writer who specializes in news articles. She has been writing on for over one years, and during that time she has written over 100+ articles on various topics ranging from politics to entertainment. Her goal as an author is to provide readers with the latest news stories while also providing her own opinion on them.