The decentralized finance (DeFi) field is known for its risks as well as the many opportunities it offers. Many such decentralized projects face hacking attacks. This time around, DeFi and NFT tool Dego Finance were reportedly hacked. After that, Dego’s altcoin project DEGO suffered a steep decline. As Kriptokoin.com, we are providing the details…
Dego Finance was hacked
Dego Finance was hacked on February 10th. Soon after, the local government and its equity token DEGO joined forces with leading cryptocurrency exchanges such as Binance, Kucoin, and Gate.io to cover their deposits. The protocol also urged platforms such as Uniswap, Poloniex, PancakeSwap, WazirX to do the same to reduce losses. The official Twitter account of Dego Finance claimed that its address, which provides liquidity on decentralized exchanges such as Uniswap and PancakeSwap, was hijacked.
As a result, liquidity was drained in team-provided DEGO pairs. The DeFi platform also called on hackers to contact them. The team used the following statements. According to blockchain security and analytics firm Peckshield, exploiters have pulled more than $10 billion from GameFi Incubator Cocos-BCX, as well as Dego Finance. The company’s data showed that funds were drained from 13 addresses belonging to Binance Smart Chain (BSC), Ethereum and Cronos.
Altcoin price hit by news of hack
Dego Finance was launched in 2020 and offers both DeFi and NFT tools. It claimed to be an open NFT ecosystem that allows users to print NFTs, in addition to auction and trading. It also offers a cross-chain infrastructure to make it easier for blockchain startups to increase their user base, distribute tokens, and develop a wider variety of NFT-based applications. In March 2021, Binance announced that it had listed the project in the Innovation Zone. DEGO, the token of Dego Finance, took a serious hit after the hack. The price retraced from $4.59 to $3.61. DEGO is trading at just over $4 at the time of writing. Some argue it’s a “rug pull” as the price has gone up in the past few days.
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