-94%: these cryptocurrencies that collapsed after the Nomad project hack

The nightmare continues! – The Nomad decentralized bridge protocol was the target of an attack that led to the $190 million loss. While some of the funds are being returned, others projects now pay the broken pots.

Collateral victims of the Nomad hack

On August 3, two days after the attack that hit the Nomad protocol, the teams of BestBrokers published a report reviewing certain attack related metrics.

This report makes it possible in particular to retrace the course of the attack. This started on August 1, with 4 transactions draining 100 BTC each. Subsequently, other transactions came to drain all the 1,028 BTC held in protocol pools. The attackers then turned to ETH pools, siphoning off the 22,880 ETH deposited on Nomad.

After the ETH, the latter attacked the stablecoins. Thus, the hackers stole the equivalent of $107 million in various stablecoins.

Once the main cryptocurrencies are stolen, it is the turn of the various altcoins supported by the protocol from being targeted by the attack. Unsurprisingly, these were quickly resold on public markets, resulting in large fall in their prices.

Five altcoins suffered in particular from this attack, registering drops often colossal in their course:

  • CARD.STARTER (CARDS) with 75% decline;
  • Charli3 (C3) with an overwhelming 94% drop;
  • Covalent (CQT) with 56% drop;
  • IAGON (IAG) with 89% decline;
  • GeroWallet (GERO) with 20% decline.
Altcoins with the largest price drops after the attack.

As the chart above shows, most of these cryptocurrencies failed to recover from the significant decline they suffered.

“When such large falls occur, the road back proves far too difficult for most of the affected assets. Although cryptocurrencies are volatile and cannot simply be wiped off the map, the coins that suffered the most from this hack will most likely struggle to return to previous levels. »

Alan Goldberg, analyst at BestBrokers.

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A complicated recovery for the crypto project

For his part, Nomad will have a hard time recovering from this attack. Indeed, the 190 million dollars stolen represented the almost all of the funds filed on the protocol.

Fortunately, some whitehats managed to secure part of the funds and gradually begin to restore them. Indeed, the address set up by Nomad for retrieve the funds now stand at $16.8 million.

An amount that remains far from the 190 million stolen during this first decentralized robbery in history.

At the same time, the Nomad teams work actively with the company TRM Labs specialized inblockchain analysis as well as law enforcement to track the stolen funds and attempt to identify the attackers.

As bad news never comes alone, a large-scale attack was recorded on the Solana network. Thus, it would seem that tens of thousands of seed phrase of user wallets were stored on a centralized server managed by the wallet slope.

Hacks are unfortunate hazards but not inevitable. Play it safe and register now on the PrimeXBT platform (commercial link).

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