Sui’s Recovery Threatened by $220 Million Cetus Hack
Sui (SUI) is facing headwinds after a significant security breach at Cetus, its largest liquidity provider. The incident, involving a staggering $220 million, has cast a shadow over Sui’s recent 60% surge in value over the past month. The SUI token has already begun to retract its gains, currently trading around $3.81.
Cetus Halts Operations Following Massive Exploit
Cetus, a key decentralized exchange (DEX) within the Sui ecosystem, swiftly responded to the hack by pausing smart contracts and suspending trading activities. An in-depth investigation is underway to determine the full extent of the damage.
The protocol acknowledged the incident, stating that their team is actively investigating the matter. A more detailed statement is expected soon.
Alert Announcement: There was an incident detected on our protocol and our smart contract has been paused temporarily for safety. The team is investigating the incident at the moment. A further investigation statement will be made soon. We are grateful for your patience.
Early reports suggest the attacker exploited vulnerabilities by using counterfeit tokens, such as BULLA and MOJO, to manipulate pricing curves and reserve calculations. This allowed them to drain substantial funds from liquidity pools.
The fallout has been severe, with over $220 million in assets compromised. Cetus’ native token, CETUS, plummeted by 40% in the aftermath.
Sui has pledged its support to Cetus, promising assistance in conducting a thorough and rapid investigation.
Sui stated that the Cetus team has their active support in this ongoing investigation and will provide further updates as soon as they are available.
Sui’s Bullish Momentum Stalls Amid Uncertainty
Prior to the Cetus hack, Sui had enjoyed a robust rally, fueled by positive sentiment in the broader cryptocurrency market. The token reached highs of approximately $4.29 on May 12th, recovering from a dip to around $1.72 in early April.
Increased volatility is anticipated as investors assess the broader implications of the Cetus exploit. A sell signal from the Moving Average Convergence Divergence (MACD) indicator on the daily chart suggests potential for further declines.
Key support levels to watch include the 50-day Exponential Moving Average (EMA) around $3.34, the 100-day EMA near $3.17, and the 200-day EMA at $2.99.
However, the Relative Strength Index (RSI), currently hovering around 62, indicates that the uptrend may still possess some underlying strength. A potential move towards overbought territory (above 70) could signal a continuation of the bullish trend, targeting gains beyond the $4.00 resistance level.
- The recovery of Sui is in danger after Cetus, the largest liquidity provider in the ecosystem, reported a hack of $220 million.
- Cetus has paused smart contracts and suspended operation pending a preliminary investigation and a detailed statement.
- Early reports suggest that the attacker used fake tokens such as BULLA to exploit defective price curves and reserve calculations.
Stay ahead of the curve in the fast-paced crypto world – explore the latest updates and trends at Cryptonewsfeeds.com.
