Cryptocurrency

Web3 Adoption Presses on Despite Hacks, Scams, and Exploits

The latest victim, Solana, at the cost of millions of dollars in user funds.

Cryptocurrency

Web3 Adoption Presses on Despite Hacks, Scams, and Exploits

The latest victim, Solana, at the cost of millions of dollars in user funds.

For all the technological advances and opportunities that crypto technologies bring, it’s clear there is still a lot to be learned and updated. Coming into August, the space has seen a Discord hack of EY3K0N, resulting in users losing their NFTs, a free-for-all exploit of the Nomad token bridge, draining $200 million USD, and most recently what seems to be a targeted attack on Solana’s hot wallet Phantom for millions of dollars.

The ongoing Solana exploit seems to have targeted user hot wallets that have been somewhat inactive, particularly Solana’s Phantom wallet. At the time of writing, over $6 million USD has been purported to have been stolen according to contract data shared on Twitter.

While a majority of the exploits seem to be taking place in connection to the Phantom wallet, some have reported that funds have been stolen out of their SlopeFinance and Trust Wallet accounts.

In a tweet, Solana’s Phantom said that they are working to get to the bottom of the vulnerability in the Solana ecosystem. While they don’t believe that the attack is Phantom-specific, the source and root cause of the exploit are still unknown.

Unfortunately, Solana users are just the latest to fall victim to such attacks. At the end of July, NFT project EY3KON had its Discord account hacked and a false mint posted to its announcements section — as a result, several members reported losing valuable NFTs including VeeFriends and more.

Days after, the Nomad token bridge was hacked, this time in a unique case where the exploit turned into a free-for-all frenzy with hundreds of copycat attacks. In just a few hours the protocol was drained of over $200 million USD.

Despite all of the hacks, exploits, scams, and even a market downtrend — crypto and Web3 adoption continue to push on and reach new heights. Examples of adoption can be seen in the launch of metaverse programs from Hong Kong University, the University of Tokyo, and Penn State.

Increased adoption can also be seen in institutional interest in NFTs from American Express — with its recent $8 million USD in funding to OneOf. Another industry continually expanding in the world of Web3 is the fashion world, with Gucci now accepting ApeCoin and Prada launching its third NFT.

In other news, MetaMask looks to reduce NFT scams with an updated warning for its “set approval for all” feature.

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