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AirDAO (AMB) Token Rallies Over 4% Despite Hack Incident

AirDAO (AMB) Token Rallies Over 4% Despite Hack Incident

CoineditionCoinedition2024/03/22 06:55
By:Kelvin Munene
  • AMB token value climbs 4.16% post-hack, showing strong investor confidence.
  • AirDAO’s quick action post-breach sees AMB market cap surge to $37.98M.
  • Positive ROC BBP indicators hint at a bullish trend for AMB despite the hack.

AirDAO, a community-driven blockchain platform, has witnessed a significant uptick in its native token AMB’s value following a security breach.

On March 21, 2024, hackers were able to drain off 126.5 ETH and 41.61 million AMB tokens from its liquidity pools. However, these drawbacks have not stopped the platform from quickly responding and communicating with transparency, leading to a sharp rise in the number of investors who have trust in the AMB token.

Yesterday morning, a hacker drained the AMB/ETH liquidity pool after obtaining access to the LP using a social engineering scam. The scam involved an email with malicious attachments pretending to be one of our known partners.

The AMB/ETH liquidity pool contained:… pic.twitter.com/donFMKAnD9

— AirDAO (@airdao_io) March 21, 2024

At press time, AMB was trading at $0.01226, a 4.16% surge from the intra-day low of $0.01101, where support was established. Moreover, during the rally, AMB’s market capitalization surged by 4.79% to $37,989,830 despite a 13.80% dip in the 24-hour trading volume

AMB/USD 24-hour price chart (source: CoinStats )

Immediate Response to Security Incident

The AirDAO team promptly disclosed the breach through an X post detailing the loss of 35.2 million AMB tokens and 125.51 ETH from its AMB/ETH Uniswap pool. The attack, executed through a social engineering scam involving malicious email attachments, posed a significant threat. 

The AirDAO team has identified a theft of 35.2m AMB tokens and 125.51 ETH from our AMB/ETH Uniswap pool. We are working with exchanges and relevant authorities to identify the hacker and retrieve all stolen funds. If the hacker returns the funds immediately we will pay a white… pic.twitter.com/lGWrT6ZCWJ

— AirDAO (@airdao_io) March 21, 2024

However, AirDAO assured its users that the theft was isolated to the liquidity pool and did not impact user funds on the blockchain or exchanges, nor the AirDAO multisig. This quick and transparent handling of the situation has been pivotal in maintaining user trust and market stability.

Recovery Efforts and Market Reaction

After the attack, the AirDAO acted quickly to recover the stolen assets, including offering the hacker 10% of the white-hat bounty for the return of $870,000. The plan is in line with its policy of working hand in hand with law enforcement, exchanges, and funds tracking.

The market has responded positively to these efforts, with an appreciable increase in the AMB token’s price.

In the aftermath of the security breach, AirDAO’s main direction will be strengthening security measures and restoring community trust. The event has led to a detailed investigation and a rethinking of safety measures to prevent such incidents in the future. Moreover, AirDAO’s engagement with its community and transparency in dealing with the hacking issue has been of great importance in preventing the tokens’ value from collapsing.

AMB/USD Technical Analysis

On the AMB/USD 4-hour price chart, the Rate of Change (ROC) shift into the positive area, with a rating of 14.03, suggests that bullish momentum is building in the market. This may result in a price hike in the near future as buyers recover faith in the token. For the bull run to continue, the ROC needs to retain its upward momentum and climb further, indicating ongoing buyer demand and market optimism.

AMB/USD 4-hour price chart (source: TradingView )

The Bull Bear Power (BBP) indicator also indicates a probable bullish trend, with bulls outperforming bears. This might add to the market’s positive momentum, driving the AMB/USD price higher in the coming days. Traders often use this indicator to gauge the strength of buyers and sellers in the market, providing valuable insights into potential price movements. If the ROC and BBP indicators continue to show positive signals, it could attract more investors to the market, further fueling the bull run.

Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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