With the data pointing to a potentially bullish month for Bitcoin, speculators are calling it “Uptober.” After September’s “Rektember,” investors typically look forward to October, which has historically been kinder to the crypto market for years.

Bitcoin, for example, has been green seven times over the last nine Octobers, with the only red ones coming in 2018 and 2019. Last year’s rally to its highest value of over $66,000 also gained steam in October.

However, the “Uptober” narrative did not have the desired effect on decentralized finance. In fact, with more than half of the month to go, October is now the biggest month in the biggest year for hacking activity, according to Chainalysis.

No deal for DeFi

The blockchain intelligence firm revealed that $718 million was stolen from DeFi protocols in 11 different hacks in October alone. The latest figure barely tops the previous highest month for attacks, March, during which the Ronin Bridge was hacked for more than $600 million. At this rate, Chainalysis claimed that 2022 will likely overtake 2021 as the biggest year of hacking on record.

By 2022, hackers have made more than $3 billion in 125 attacks so far.

The series of exploits and hacks is in contrast to 2019, when hackers targeted centralized exchanges. Fast forward to three years later, the vast majority of targets are DeFi protocols. Interchain bridges, which contain significant amounts of cryptocurrency stored to support the movement of tokens between blockchains, continue to attract malicious entities.

In October, three bridges were breached and nearly $600 million was stolen, accounting for 82% of this month’s losses and 64% of all year’s losses.

season of exploits

Solana-based Mango Markets DeFi lost up to $100 million after an exploiter managed to manipulate an oracle price, thereby draining liquidity. As previously reported, the self-funded economic attack hacker loaded $5.5 million worth of USDC to obtain a perpetual futures contract for the MNGO token and trade it.

This successfully manipulated the price of the token, allowing the entity behind the attack to borrow from Mango’s treasury and eventually drain liquidity before it crashed.

TempleDAO was yet another victim in the series of DeFi attacks in which the attacker financed the wallet with funds from cryptocurrency exchange Binance. The protocol lost 1,831 ETH or nearly $2.3 million in the process. On the same day, the Rabby Swap smart contract was hacked, resulting in a loss of $200,000 after the attacker managed to exploit a vulnerability in the smart contract.

Just a few days prior, QANplatform’s smart contract bridge was mined for over $1 million, causing its native QANX token to lose 90% of its value.

SPECIAL OFFER (Sponsored)
Binance Free $100 (Exclusive) – Use this link to sign up to receive $100 free and 10% off Binance Futures first month fees (terms).

PrimeXBT Special Offer: Use this link to sign up and enter the code POTATO50 to receive up to $7,000 on your deposits.





This post Uptober Becomes Hacktober As Crypto Exploits Soar

was published first on https://cryptopotato.com/uptober-turns-to-hacktober-as-crypto-exploits-skyrocket/

Author

Write A Comment