Solana-based decentralized crypto exchange Cypher was the victim of an attack earlier this month. As part of its efforts to recover from this attack, it plans to hold a token sale soon.
The crypto exchange that lost its assets in the attack is issuing new tokens!
In a series of blog posts, contributors say Cypher will use the proceeds from the sale to fund development and replenish the depleted treasury of the crypto project. cryptocoin.com As you follow, Cypher was attacked by a hacker on August 7th. The hacker emptied most of the protocol. Thus, Cypher lost over $1 million in miscellaneous assets.
With its accelerated initial decentralized offering (IDO) scheme, Cypher will issue a debt token to investors who lost their deposits due to the hack. Thus, he will try to close the huge hole in his treasure. The crypto platform had originally planned this for the end of September. The blog post stated that they will be able to get their money back as the protocol grows.
How will the new token be distributed?
Cypher’s new token issuance plan will test whether the protocol can recapture the dizzying momentum in late July and early August when airdrop hunters piled into one of the fastest growing protocols in the Solana ecosystem. It is also possible to show where the Solana ecosystem and its investors stand on new token issuances. Because Blockchain hasn’t seen a big IDO in a long time.
The tokenomics of the sale rarely turns to public investors. Cypher posted about tokenomics on X, formerly known as Twitter. Accordingly, more than 45% of the tokens will be sold to the public. In addition, 23% will go to the team and 11% to the investors. The crypto platform will dedicate the remaining 1.2% to advisors and 12% to growth incentive programs. Finally, another 7.3% will go to the token’s airdrops.
Before the exploit, cypher was a leading protocol in Solana's DeFi resurgence.
Then this hack happened.
Now the top priority is doing right by our community. pic.twitter.com/AnIxkHtKCC
— cypher ©️ (@cypher_protocol) August 23, 2023
Crypto platform will pay affected depositors
It’s unclear how Cypher will handle the airdrop, which many of its new customers expect will be based on their activity measured by a point system prior to the August 7 attack. However, Cypher will distribute 50 million tokens to depositors who lost money due to the attack, regardless. The protocol will reimburse affected depositors at the rate of 31 cents per dollar, using the funds not stolen.
In the blog post, the protocol states that Cypher is still trying to recover the hacked funds from the August 7 attacker. Meanwhile, he managed to freeze $600,000 worth of crypto on centralized exchanges. “Return of these funds will depend on the cooperation of these CEXs and on seizure orders from law enforcement,” the blog post said.
