DeFi protocol Launch Zone was hacked by DND exploits on February 27th, causing a catastrophic drop in the value of native token LZ.
The protocol warned People; they have advised against buying that token for the time being and said their team is addressing the situation. They stopped trade and transfer of the token until the issue is resolved.
Please be informed that given the current situation, we have decided to pause the trading/transferring of $LZ token until the problems are solved. Thanks for your understanding and please keep updated! pic.twitter.com/CMz4I5V1wb
— LaunchZone (LZ.finance) (@launchzoneann) February 27, 2023
The token dropped from $0.15 to $0.003 and recovered slightly to $0.026 at the time of writing. crypto slate data.
The token market cap dropped from over $1 million to under $40,000 in a matter of hours as millions of LZ were dumped via the DEX. At the time of press, the token had a market capitalization of approximately $250,000.
Exploiters reportedly depleted more than 80% of the liquidity pool, with the rest being caused by panic selling after the crash.
Data shared by Launch Zone shows that the abuser stole approximately $400,000 worth of LZ and $88,000 of BUSD. However, further investigation revealed that the abusers netted about $700,000 in total, based on data from Blockchain Explorer.
It is unknown how many tokens the hackers exchanged and transferred before the protocol stopped trading.
On the other hand, Biswap DEX is Exclusion LZ tokens until further notice.
The LZ token crash started when someone dumped 9.88 million LZ tokens on Pancakeswap hours before Launch Zone announced the hack. PeckShield Alert.
The blockchain analytics firm further stated that the LZ hack was a bigger “wild hack” and asked people to revoke permission to the bsc address in question.