The price of the MNGO token collapsed by more than 40%.
The native MNGO token of the Solana blockchain-based decentralized finance project faced manipulation by a third-party participant who took advantage of the fact that MNGO was de facto overvalued. Given this, he was able to take out a large volume of loans against MNGO and withdraw over $100 million worth of liquidity into the wallets.
It remains unclear how this participant managed to achieve a higher price for MNGO for a short time, but now due to his actions MNGO has already fallen in value by 43.2%. In the beginning, it is likely that the attacker used five million dollars in USDC Stablecoins in lending transactions, which was one of the factors that increased the price of MNGO.
The funds withdrawn by the attacker remain on Solana’s blockchain, and the project is making efforts to “freeze” withdrawals by third parties. The assumption is that the attacker may try to exchange the funds he controls on Solana through centralized cryptocurrency exchanges.
It is worth noting that Solana is one of the most well-known alternatives to the Ethereum blockchain. Some of the advantages Solana has over Ethereum, previously already Became its vulnerabilities.
The current MNGO story has had a situational impact on investor sentiment in SOL: the Solana native token, which has lost 0.77% in the last 24 hours. Thus, for SOL, the decline in seven days reached -8.5%, i.e. was twice as big as for Ethereum.