Fantom is one of the largest DeFi chains in the space with more than 201 protocols and $6.28 billion pegged to them. One such protocol, Fantasm, Finance, recently fell victim to an exploit that involved theft of more than $2.6 billion.
Needless to say, the exploit resulted in a much bigger impact on Fantom itself.
The Fantom exploit continues to haunt
After the FSM exploit event, the team released a post-mortem report detailing what went wrong. According to the report, the exploiter managed to send his BNB through multiple gateways to bring them to Fantom and then implement a contract that activated the exploit.
The exploit resulted in consistent XFTM mining, which the exploiter sold for FTM. Finally, all of the FTM was sold for $2.6 billion worth of ETH and transferred through Tornado.
In addition to the forensic analysis, the Fantasm Finance team also announced that they would use the FTM 174 million collected in protocol fees to repay the FSM holders. In addition, after realizing the exploit, the team managed to whitehack 935,415 FTM. This proceeds also goes towards offsetting the losses.
Furthermore, the entire protocol is being relaunched with a new DAO for the protocol decision-making process.
Unfortunately, despite these efforts, FUD has already hit investors quite a bit. In fact, 15 million FTM were sold back on exchanges within 24 hours of the exploit.
This was followed by a series of price drops with FTM losing 19.45% of its value and the long-term support of $1.15.
At the time of writing, the altcoin was trading at $1.09 – its lowest point since September 21, 2021.
The effects of the exploit are seemingly hard to undo as the Fantom-based DEX SpookySwap recently launched its token on Huobi. And yet it didn’t get a positive response on the charts or from the community.
A new CEX listing for SpookySwap and @Screamdotsh has been announced!https://t.co/kloeUHSTEF $BOO and $SHOUT deposits on @HuobiGlobal‘s Pioneer Zone will open on March 14 at 12:00 UTC, spot trading coming soon ️
Stay tuned for news about upcoming community rewards 🎁😻 pic.twitter.com/ouWjL4kMSn
— SpookySwap (@SpookySwap) March 13, 2022
The Decentralized Exchange (DEX) has already lost 58% of its TVL since the crash started in December. Therefore, it is worth arguing that even the mention may not help with the recovery.
This exploit further hit those investors who backed out from suffering losses. This resulted in the network’s 24-hour transaction volume of $9 million – the lowest in more than 7 months.