Four.Meme Token Surge and Fall: Whats Behind the Volatility?
- Four.Memes exploit led to $183K in losses, though user funds remain secure, while liquidity pool on PancakeSwap is paused.
- The rise in crypto platform attacks, including the $2.2M loss at Gem Pad, raises concerns about the safety of launchpads.
- TST token surged 1,100%, but later corrected to $0.22, reflecting high volatility in the market.
Four.Meme, a Binance Smart Chain-based memecoin launch platform, was the latest to fall prey to such an assault. Therefore, the platform stopped the provision of token liquidity pool to PancakeSwap until after a while. Blockchain security firm that is known as PeckShield, notes that the exploit cut losses and took approximately $183K worth of digital tokens. However, it also stated that users internal funds were safe and were not affected by the situation.
The attack on Four.Meme contributes to the growth of hack attempts directed at crypto platforms. Another meme coin platform, Gem Pad, which is a direct competitor to the protocol, was attacked in March and lost up to $2.2 million across the multiple chains and tokens. These cases have cast doubts in the reliability of crypto launchpads as well the dangers awaiting investors.
Four.Memes Volatile Token Performance
The Four.Meme platform has only been under discussion days prior to the exploit. BNB Chain has released a test token (TST) given that Four.Meme launchpad that was created in a tutorial video. The TST token got a boost in demand and popularity. In its initial three-day trading, TST climbed 1,100% to an intra day high of $0.52.
Binance founder, CZ highlighted that TST was not as an organizations token and also not backed by him. On X, he stated that TST had no relationship with Binance except for tutorial purposes. After the boost, the TST price went down for the $0.22 while maintaining a market cap of about $208K for some time. TSTs price has risen by 22% in the last 24 hours which clearly shows the volatility of the token after a great deal of fluctuation.
BNB Chain Growth Amidst Attack
However, the BNB Chain has demonstrated that it is still capable of expanding as a security incident occurs. It reached 500 million unique active addresses recently, which is a sign of the ever-increasing use of blockchain. However, the Four.Meme attack is an example of security issues that the growing industry of crypto has to confront.
These events mean that the application of security measures in the arena of cryptocurrencies, especially memecoins, are required. With the ever-growing market in the cryptocurrency world, it is paramount to govern members deposits in order to maintain its legitimacy among the public within decentralized financial systems.
Read more: https://www.tronweekly.com/four-meme-token-surge-and-fall-whats-behind/
Text source: TronWeekly
