SHIB Price Soars as WarizX Hacker Dumps Entire Token Stash

Hacker's Actions

A recent update from Arkham Intelligence reports that the hacker who breached the WazirX exchange has sold all their stolen Shiba Inu (SHIB) tokens. The bad actor exchanged the SHIB tokens for 26,535 ETH, worth roughly $92 million at current prices.

Market Response

The SHIB token saw a 3% rally following the news, according to CoinGecko data. This uptick comes after an earlier substantial price drop due to the WazirX hack, where SHIB accounted for nearly half of the $235 million in stolen digital assets. Other stolen tokens included Ethereum (ETH), Floki (FLOKI), and Polygon (MATIC).

Price Drop Mitigation

Despite the hack, SHIB's price drop was around 10%, less severe than expected. This could be attributed to market makers like Wintermute buying the token from decentralized exchanges and selling it for arbitrage, thus stabilizing the price.

The hacker's actions and subsequent market reactions highlight the volatility and rapid changes in the cryptocurrency market. While the hack initially caused a significant drop, market mechanisms helped mitigate the impact.