- Cardano Foundation account hack sparks $500K fraud through false ADAsol token promotion
- ADA falls 4.63% to $1.14 while trading volume rises amid market panic
- Cardano dismisses false claims and confirms ADA remains the foundation of its network
On December 8, the Cardano Foundation’s X account was hacked in a security breach that misled users and affected market sentiment.
The attacker used the account to promote a fraudulent release of the ADAsol token, falsely claiming the Foundation would discontinue support for its native token, ADA, due to an alleged lawsuit by the U.S. Securities and Exchange Commission (SEC). These false assertions led to $500,000 in trading volume before the Foundation regained control of the account.
The Foundation clarified that ADA remains central to its ecosystem and dismissed the misinformation. It also assured the community that claims of a network transition to an alternative token were entirely baseless.
Charles Hoskinson Reacts to Cardano Hack
Cardano founder Charles Hoskinson addressed the hack through his X account, criticizing the attackers for exploiting the Foundation’s credibility.
The breach impacted market sentiment as Cardano (ADA) saw a price drop of 4.63%, settling at $1.14. ADA’s market capitalization decreased by 3.98%, reaching $40.13 billion, while trading volume rose 11.23% to $1.63 billion. Analysts attributed the spike in trading activity to panic-driven moves by investors.
ADA Market Stability Amid Hack Fallout
Despite the price drop, ADA’s large circulating supply of 35.10 billion tokens out of a total 45 billion provides some stability to the ecosystem. However, the volume-to-market-cap ratio of 4.04% indicates relatively low trading activity compared to its market size.
Read also: Cardano Network Thwarts DDoS Attack Targeting Staked ADA
While the incident highlighted vulnerabilities in online platforms, it also underscored the importance of vigilance in safeguarding blockchain projects.
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