The Cardano Foundation’s X account was hacked on December 8, causing an uproar within the crypto community. The hackers used the account to promote a fake token and spread false news about an alleged SEC lawsuit. This incident not only damaged Cardano’s reputation, but also had a significant impact on ADA’s share price, which fell by 8.5%.
Fake token causes confusion and financial damage
The hack started with the promotion of a fake token called $ADASOL, which was presented as a partnership between Cardano and Solana. The post was professionally crafted, with references to official sources such as the Cardano Foundation website and a podcast episode. This made it look like a credible announcement, leading to $500,000 in trading volume before the scam was exposed and the token crashed by 99%.
After deleting the initial messages, the hackers posted another fake message stating that the Cardano Foundation would stop supporting ADA due to an alleged lawsuit with the US Securities and Exchange Commission (SEC). This caused panic among investors and amplified the negative impact on the ADA price.
Reactions from Cardano
The hack was later confirmed by Charles Hoskinson, the founder of Cardano. The Cardano Foundation indicated that they are working to restore control of their account and emphasized that other parts of the Cardano ecosystem were not affected. However, users were warned to be careful with links and messages coming from the hacked account.
The Foundation said in a statement that an official update will be posted via their LinkedIn page once control of the account is fully restored.
Influence on ADA’s share price
The hack had a direct impact on ADA’s price, which fell 8.5% to $1.11. While the broader crypto market is also currently under pressure, news of the hack appears to have accelerated ADA’s decline. According to blockchain detective ZackXBT, word of the alleged SEC lawsuit was quickly shared on Telegram, adding to investor panic.
Other tokens in the crypto market, such as XRP, are also experiencing pressure from broader market developments. Despite this, Cardano appears to be one of the hardest hit tokens of the day, partly due to the news of the hack.
Warning for the future
The incident underlines the importance of vigilance when dealing with links and announcements, even from seemingly reliable sources such as official accounts. For the Cardano community, this is a painful reminder of the risks associated with cybersecurity in the crypto world.
The Cardano Foundation emphasized that they are doing everything they can to remedy the situation and protect the user community from further harm.
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Source: https://newsbit.nl/hack-cardano-foundation-veroorzaakt-paniek-koers-ada-zakt-85/
