Latest news about Bitcoin and all cryptocurrencies. Your daily crypto news habit.
The price of Cashio (CASH), a USD-pegged stablecoin based on the Solana blockchain, dropped to nearly zero today after a newly discovered exploit allowed users to produce unlimited amounts of the token.
âPlease do not mint any CASH. There is an infinite mint glitch,â Cashioâs Twitter account announced today. âWe are investigating the issue and we believe we have found the root cause. Please withdraw your funds from pools. We will publish a postmortem ASAP.â
Please retweet for visibility.
â Cashio ($CASH) (@CashioApp) March 23, 2022
Under normal circumstances, users had to lock up their USDT and USDC stablecoins in a liquidity pool in order to mint Cashio. However, the exploit allowed at least one attacker to mint 2 billion CASH tokens without providing anything in return. Consequently, the hacker used his newly acquired âfreeâ tokens to drain other stablecoins from Cashioâs pools.
Cashioâs (CASH) price dropped by 100%. Image: CoinGecko
As a result, the price of CASH crashed from $1 to $0.00005786, effectively losing 100% of its value, according to crypto metrics platform CoinGecko.
Prior to the crash, around $28.9 million worth of CASH tokens were locked in the ecosystem, DeFi Llamaâs data shows. However, after the glitch was discovered and exploited, this figure shrunk to just about $580,000.
Cashioâs TVL shrunk from $28.9 million to $580,000. Image: DeFi Llama
In its turn, Saber, a Solana-based market maker protocol on which Cashioâs liquidity pools were based, quickly stopped the corresponding operations.
âWeâve paused all $CASH poolsâwe are investigating the issue and will provide an update ASAP,â Saber tweeted today.
We've paused all $CASH pools â we are investigating the issue and will provide an update ASAP. https://t.co/lqqB869mYw
â Saber (@Saber_HQ) March 23, 2022
Sadly, Cashio is far from the first âstableâ token that ultimately proved to be anything but. For example, the price of SafeDollar, an algorithmic DeFi stablecoin based on the Polygon blockchain, similarly dropped to near-zero due to a $248,000 exploit last summer.
The post Stablecoin Cashio plummets by 100% due to infinite mint glitch appeared first on CryptoSlate.
Disclaimer
The views and opinions expressed in this article are solely those of the authors and do not reflect the views of Bitcoin Insider. Every investment and trading move involves risk - this is especially true for cryptocurrencies given their volatility. We strongly advise our readers to conduct their own research when making a decision.