Bondly Finance Hack: An Opportunity Or A Signal To Run For The Hills
In February of 2021, the decentralised finance (Defi) insurance platform Armor finance offered a white hat hacker $1.5 million worth of tokens. The hacker discovered an exploit that would have resulted in a potentially malicious actor draining the project’s underwriting funds.
Additionally, the project’s Twitter handle confirmed on February 28th that a sophisticated social engineering scam resulted in the loss of 1.2 million Armor tokens from a team member. While this was not a hack per se, the market price of Armor tokens took a significant hit (see Figure 1). While the token’s price experienced volatility towards the downside, news of the scam prompted a sell-off.
Note that it is impossible to perfectly time the bottoms and tops of markets without significant luck. Nevertheless, for Armor tokens, the market bottom occurred around $0.59. The market top occurred at approximately $1.50 on February 28th and April 15th, respectively. One would have seen a 2.5x ROI if one were able to time the market.
Similarly, the current price of BONDLY tokens reached a seven-day low of $0.00255 and a high of $0.01484, as of August 13th, a 5.8x ROI (see Figure 2). Remember that the project team continuously warns would-be traders and investors to refrain from trading the compromised tokens. More so, the project team are looking to redeploy tokens at a later time.
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