Bittensor (TAO) slumped over 15% on Wednesday after the blockchain ecosystem faced a wallet drain. The attack on many user wallets resulted in a temporary suspension of the Bittensor blockchain. The incident comes as crypto critics have repeatedly criticized the sector for hacks, wallet drains, and privacy issues.
TAO slumps over 15%; Will it fall further?
TAO took a deep skid of around 15%, being one of the top losers for the day. At the press time, the coin was trading at $233.54, down over 11%, according to data from CoinMarketCap.
After the attack was reported, Bittensor (TAO) halted its operations and said it was being investigated. It is believed that a private key breach caused the attack. Bittensor has been placed in “safe mode” to stop transactions until additional details are obtained.
The slump has now caused questions about the future trajectory of TAO. Most technical indicators show that the Fear & Greed Index for the coin is currently reading 50 (Neutral), indicating a bearish market. During the previous 30 days, Bittensor had 13/30 (43%) green days and 15.01% price volatility.
But at present, there is an overall bearish feeling about Bittensor’s price prediction, with 4 technical analysis indicators indicating bullish signs and 22 indicating bearish signals.
Have Crypto Hacks Become Way Too Common?
TAO’s current incident highlights the ongoing battle in the cryptocurrency field against exploits and hacks, which continue to be one of the biggest obstacles to widespread adoption. In 785 documented hacks during the previous 13 years, the cryptocurrency sector has experienced theft of close to $19 billion.
Cybercriminals are constantly searching for vulnerabilities to exploit to access cryptocurrency exchanges without authorization. Anti-hacker precautions are implemented on most cryptocurrency systems, with multi-factor authentication being the most straightforward and widely utilized method.
However, hackers usually find weak gateways on crypto exchanges and wallets to perform hacks, drains, etc.
According to Forbes, hackers will probably continue to find great financial success in the foreseeable future with crypto exchange attacks because of the high level of user interest in digital currencies. Exchange owners are unable to forecast whether or not their platform would be targeted, much alone how, because every vulnerability is exploited differently, even if they are aware of all the main hacking techniques.
In addition, hackers always modify their strategies and devote more resources to attacking exchanges.
