VOW token experienced a dramatic 80% drop following a technical mishap involving the USD rate setter function of the V$ contract.
The incident occurred as the development team was testing this function, which is critical for minting V$ for new lending pools and oracle functions.
During testing, the team adjusted the USD rate and sent 1 million VOW tokens to the contract to ensure that everything was functioning correctly.
This process created V$100 million, which was meant to be burned after the test. The entire process, including the adjustment, testing, and reverting, took approximately 15-30 seconds.
Subject: Update on Recent Market Incident and Ongoing Efforts
Dear Community,
We want to clarify the recent incident that has occurred while our team was testing the USD rate setter function of the v$ contract in order to mint v$ for the new lending pool and oracle functions.…
— Vow (@Vowcurrency) August 13, 2024
However, in this short window, an unforeseen event unfolded. A bot managed to acquire approximately 20 million VOW tokens from Uniswap and sent them to the contract, resulting in the creation of nearly V$2 billion. The bot then sold this V$2 billion into the Uniswap pool, leading to a significant disruption in the market.
VOW Token Price Impact Drops Over 78% In Just 24 Hours
This incident triggered widespread concern among the VOW community, as the token’s value plummeted by 78.1% in just 24 hours, leaving it currently trading at $0.07167. Data from iCrypto.ai highlighted two unusual volume spikes in VOW trading, totaling around $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, the team is actively working to mitigate the impact of this incident and restore normal operations as quickly as possible. They are also implementing additional safeguards to prevent similar occurrences in the future.
Despite the turmoil, 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, while Smart Money increased their holdings by $106.6K. Some savvy traders even managed to profit by catching the dip, with gains of up to 30%.
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
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