The impact of Terra’s downfall continues to send shockwaves across cryptocurrencies, with altcoins trying to recover from the collapses of May 9th and 11th. Most altcoins have somehow managed to look north, but the one that has failed completely is the Phantom.
The cryptocurrency moved south on May 14th, nullifying all recovery attempts made on May 13th.
phantom looks scary
After climbing the chart by almost 45% from its highs, the FTM traded at $0.43 before falling due to the evolution of the ecosystem.
It’s worth noting here that one of the chain’s top 10 protocols, the decentralized exchange SpiritSwap, fell victim to a major hack as its protocol domain was hijacked by an exploit in GoDaddy.
In the process, the hacker copied SpiritSwap’s codebase and changed swap parameters in the process. This allowed hackers to receive all swaps directly into their wallets.
However, before the exploit could execute its plan, the DeFi protocol recognized the exploit and immediately shut down the site, instructing users not to perform a swap as about $18,000 had already been lost.
– Acquired domain
– Hackers have created their own version of our site on the original domain.
– A hacker-created site sends the swap to your wallet.
– The domain cannot be accessed to bring the site down.
– No problem with the contract
– Your funds are safe, but your domain is not.
— SpiritSwap (@Spirit_Swap) May 13, 2022
So, to prevent this further, the DEX team stated that if the domain is out of control, Spiritiswap will move to a new domain and re-enable router swapping.
However, the backlash caused by the FUD saw the Fantom lose a 45% rally, 31.57% below its current high on May 13th. (Reference. Phantom price action image)
As a result, Phantom is moving further into oversold territory as the DeFi chain has lost more than $2 billion in 10 days.
The stablecoin UST, the second most problematic coin after LUNA, is also currently doing better than Phantom.
In addition, fears and hopes of cashing out at the May 13th FTM high led investors to sell 53 million FTM worth $15.9 million, with the entire chain reaching FTM 200 million. This was the highest amount on the Phantom Network. Seen from September 2021.
Fortunately, Fantom continues to have over 88,000 investors.
However, if the altcoin doesn’t recover soon and continues to fall off the charts, these sales could rise further and the network may see investors exit the market.