PancakeBunny is a decentralized exchange (DeFi) platform that lets investors swap cryptocurrencies directly without intermediaries. DeFi platforms are known for flexible fees, high interest rates, and the chance to trade tokens before they hit major exchanges, sometimes doubling or tripling your investment when those tokens go mainstream.
However, DeFi exchanges are often prime targets for hackers, sometimes leading to total collapse. Recently, PancakeBunny (Bunny) was hit by hackers who exploited a vulnerability to steal a huge amount of Bunny tokens before manipulating the price and dumping them on the market.
At that time, a large amount of Binance Coin was bought in the Bunny/BNB pair, causing Bunny’s value to plummet 96% from over $240 down to $150, and even hitting zero for nearly 30 minutes.
The Bunny/BNB pair that was drained included 697,000 Bunny tokens and 114,000 BNB, worth nearly $200 million at the time of withdrawal.
The development team quickly regained control and reassured investors that deposits totaling over $1 billion remain safe. Bunny’s price briefly bounced back to $100 before falling again to around $30 currently.
Crypto hacks aren’t new. A common fix is to release a hard fork that splits off the stolen funds into a new token with no liquidity or value.
This attack came amid a tough period for crypto markets, which have lost hundreds of billions due to various soft attacks. The market now shows signs of recovery, with Bitcoin reaching $42,000 and total market cap hitting $1.8 trillion.
