Thorchain Hit by Second Exploit in Two Weeks, RUNE Token Plunges

Thorchain's RUNE token has plummeted following a second exploit within two weeks, resulting in an estimated loss of $8 million. The price of RUNE has dropped by 25% in the past 24 hours, making it the worst-performing digital asset among those tracked by Messari with a market capitalization of $500 million or more.

Thorchain Suffers Second Exploit Within Two Weeks, Causing RUNE Token to Plummet

Thorchain, a decentralized liquidity protocol, has fallen victim to a second exploit within a fortnight, leading to a significant decline in the value of its native token, RUNE.

RUNE Token Suffers 25% Loss Amidst Exploit

As of early Friday, the RUNE token had plunged 25% within the past 24 hours, trading at $3.58. This marked the most severe performance decline among digital assets tracked by Messari with a market capitalization exceeding $500 million. Additionally, the token has experienced a substantial 80% depreciation since reaching its all-time high in May.

Second Exploit Costs Thorchain $8 Million

Late Thursday, Thorchain announced that it had been subjected to an exploit, resulting in an estimated $8 million loss. Last week, the protocol had faced a separate incident, in which approximately 4,000 ether (equivalent to $8.2 million) was drained.

Details of the Exploit

According to Thorchain, the latest incident involved a malicious actor deploying a custom contract. This contract exploited a loophole in the network's Bifrost Protocol, enabling the attacker to deposit counterfeit assets. Consequently, the protocol processed a reimbursement of genuine assets to the hacker.

Market Capitalization Declines

Thorchain's market capitalization has dwindled to $841 million following the recent exploit. Established in 2018, Thorchain enables users to exchange native assets across various blockchains in a decentralized manner.

Outperformance Despite Setbacks

Despite the recent exploits, the RUNE token has managed to maintain a 178% year-to-date increase, significantly surpassing Bitcoin's 11% return over the same period.

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