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Holders of the Pickle Finance PICKLE native coin are currently suffering from a 50% withdrawal after the protocol was attacked by an unknown user. Details are not yet clear on the attack, but the loss of funds has led users to withdraw their cash and sell the cryptocurrency en masse.
PICKLE is down to $ 11.50 at the time of writing, just under 50% from 24 hours ago. This makes it one of the worst performing cryptocurrencies in the last 24 hours. Only negative results include yAxis and Yield Wars, both of which are tangentially related to Pickle.
Related Reading: Here’s Why Ethereum’s DeFi Market May Be Near Bottom
What happened with Pickle?
About three hours ago, analysts spotted a suspicious transaction involving Pickle Finance’s pDAI jar, which invests users’ DAI to earn regular returns paid in DAI.
The transaction involved a complex Ethereum contract, paired with DAI worth $ 20 million that had been sent to an address that was not a contract.
It appears to be a bug related to Pickle’s Swap Jar feature, which allows you to swap agricultural production strategies. The problem was that there was apparently no control to ensure that the jar the funds were traded in was not harmful.
This resulted in the removal of $ 20 million from the contract. It is currently unclear what the attacker will do with the funds, although some have attempted to contact the attacker to try to get his money back.
Related reading: Tyler Winklevoss: A “tsunami” of capital is coming for Bitcoin
Many DeFi exploits
This is the latest of many recent DeFi exploits.
Previous attacks included those on Harvest Finance, Value DeFi, Akropolis’ Delphi yield farming pool, and many more.
Many believe it is still too early to suggest that this space is ready for mainstream adoption with the number of attacks that have taken place recently.
Related reading: 3 Bitcoin chain trends show a macro bull market is brewing
Featured Image from Shutterstock Price tags: pickle, pickleusd, pickleeth Charts from TradingView.com Prominent DeFi Coin Pickle Finance Plunges 50% in Wake of Attack
