VOW Token Price Impact Drops Over 78% In Just 24 Hours

VOW token experienced a dramatic 80% drop following a technical mishap involving the USD rate setter function of the V$ contract.

After a technical incident involving the USD rate setter function of the V$ contract, VOW token price crashed by 80%.

The incident occurred during a test to prepare for minting V$ for new lending pools and oracle functions. During the test, the team adjusted the USD rate and sent 1 million VOW tokens to the contract to ensure everything was working correctly.

This process created V$100 million, which was supposed to be burned after the test. The entire adjustment, testing, and reverting took about 15-30 seconds.

However, during this short window, a bot managed to acquire around 20 million VOW tokens from Uniswap and send them to the contract, resulting in the creation of nearly V$2 billion.

The bot then proceeded to sell this V$2 billion into the Uniswap pool, which significantly disrupted the market.

As a consequence of this incident, the VOW community expressed great concern, with the token’s value plummeting by 78.1% in just 24 hours, bringing its current trading price to $0.07167.

According to data from iCrypto.ai, two unusual volume spikes were observed in VOW trading, amounting to a total volume of approximately $13 million.

$VOW Dropped 80% After V$ Contract Exchange Rate Incident ?

Data from https://t.co/kFF8LDumzs shows 2 unusual volume spikes in $VOW, with a total volume of ~$13M. In the past 24hrs, $VOW dropped 78.1% and is currently at $0.07167.

Meanwhile, labels "Smart Money" and "Smart… https://t.co/yDMELrtwwL pic.twitter.com/3rwImimEbC

— iCrypto | Sentiment & On-chain Analysis (@iCryptoAI) August 14, 2024

In response to the incident, the team is working hard to minimize its impact and restore normal operations as quickly as possible. They are also putting in place additional safeguards to prevent similar occurrences in the future.

Despite the turbulence, both “Smart Money” and “Smart Dex Traders” have been steadily accumulating VOW.

Over the past 24 hours, Smart Dex Traders added $413.5K worth of VOW, and Smart Money increased its holdings by $106.6K.

Some astute traders even managed to profit by catching the dip, with gains of up to 30%.

The post $VOW Token Price Drops 80% Following Technical Mishap Involving V$ Contract appeared first on NullTX.