Solana price 'bear flag' paints $50 target as Wormhole hack exposes security holeBy Cointelegraph (contrib. Fatstack)
Solana (SOL) became one of the worst performers among the top cryptocurrencies on Feb. 3 as traders assessed its links with the second-biggest hack to date.
$325M worth of wETH gone
SOL price dropped by 5.50% to below $96.50 as Wormhole, a bridge between Solana and Ethereum blockchains, reportedly lost $325 million worth of Wrapped Ethereum (wETH) due to a technical vulnerability.
Prior to the hack on Wednesday, SOL was trading as high as $112.
In detail, hackers tricked a series of Solana's smart contracts into signing illicit transactions digitally posing as "guardians," reported blockchain researcher Kelvin Fichter on Feb. 2, the night after the hack. He wrote:
"The attacker made it look like the guardians had signed off on a 120K deposit into Wormhole on Solana, even though they hadn't. All the attacker needed to do now was to make their "play" money real by withdrawing it back to Ethereum." . . .