A new DeFi project offers investors the opportunity to become early adopters and reap the rewards of taking such a risk. On the other hand, things can go sideways and an exploit can quickly put an end to all tender hopes and dreams. Now, while some of the Fantom community is struggling to get out without getting hurt, here’s what you need to know.
Call the ghostbusters!
Fantasm Finance introduces a “Fractional-Algorithmic Synthetic Token” linked to 1 Fantom [FTM] on Fantom Opera, saw a hacker exploit his FTM collateral reserve. Later, the hacker took over 1,000 ETH – about $2,620,546.31 at the time of writing – and moved it to Tornado Cash, a mixer that makes it more difficult to trace the origins of crypto assets.
— PeckShieldAlert (@PeckShieldAlert) March 10, 2022
At the time of going to press, the Fantasm XFTM [XFTM] token had lost 98.06% of its value in 24 hours and was worth only $0.02743. It was once worth $1.82. Meanwhile, Fantasm FSM [FSM] traded at $4.37 and was down 70.65% in one day.
However, since only the Fantasm Finance project launched on February 28 this year, early operation sparked rumors among some investors that the project would be a carpet puller.
However, for its part, Fantasm Finance tweeted an apology and said it was seeking to publish a post-mortem of the incident. In the meantime, it warned investors to: redeem their XFTM and exit liquidity pools straight away.
To add to the confusion, Fantasm also announced that some of his collateral had been exploited by a white hat hacker† No doubt many will be waiting to get their hands on the technical post-mortem report.
We apologize for the exploit that just happened.
A postmortem with compensation options will be published tomorrow. We are now analyzing the exploit.
Again sincere apologies.
— Fantasm Finance (@fantasm_finance) March 9, 2022
Are you feeling a little shocked?
While the exploit led to depreciation of XFTM and FSM, it appears that FTM investors are also on the fence. As of going to press, FTM was trading at $1.27, after falling 10.51% in the past 24 hours. Looking at the supply of exchanges, we see an increase in the number of FTM coins leaving wallets and coming to the exchanges. This is a strong sign of selling out.
The Fantasm operation comes days after the Fantom community was shocked when Andre Cronje and Anton Nell, two senior Fantom Foundation execs, announced they were leaving DeFi.
Nell’s next announcement about ending 25 apps also sparked panic selling from March 6. Cronje had previously written about his frustration with the DeFi community and its fast-paced rich culture.
This post Everything There Is To Know About ‘Spooked’ Fantasm Finance, XFTM’s 98% Drop
was published first on https://ambcrypto.com/as-fantasm-finance-is-spooked-and-xftm-drops-by-98-heres-what-you-should-know/