The crypto market is experiencing just about every odd event one could think of this week. From the market-wide crash, to China’s crypto ban, to Elon Musk’s cryptic “cybervikings” tweet pumping Dogecoin (CCC:DOGE-USD), you can never be too sure of what to expect. Pancake Bunny (CCC:BUNNY-USD) is hurting bad with some unprecedented news. A market exploit allowed somebody to flash attack the Pancake Bunny (BUNNY) crypto and make off with millions.
Pancake Bunny is a native token to PancakeSwap (CCC:CAKE-USD). It’s a straightforward yield-farming token; simply buying and holding BUNNY leads to returns from others’ farming rewards.
But the week has not been kind to the BUNNY token.
A flash loan attack has allowed a bad actor to tank the price of BUNNY and run off with a ton of money. All in all, it appears that the attacker is making off with $43 million.
Pancake Bunny (BUNNY) Crypto: What Happened to BUNNY?
A flash loan attack is an exploit used to quickly pump and dump coins. The attacker took out a flash loan of BinanceCoin (CCC:BNB-USD). They then used the huge amount of BNB to manipulate token prices of Tether (CCC:USDT-USD)/BNB and BUNNY/BNB liquidity pairs. The price pumping had allowed them to accrue a huge number of BUNNY tokens. The manipulative pumping saw BUNNY climb to $240 from $150. After creating the artificial $90 gain, the exploiter sold off all the BUNNY, repaid the flash loan to Binance, and vanished.
The sale of the BUNNY has tanked its value. The artificially created $240 high dropped to just about $0.
Since the exploit, BUNNY is slowly and steadily coming back from its near $110 million market capitalization losses. Prices are rebounding by 23% to a current value of $40.93 today, thanks to a near 88% increase in trading volume. While that’s still a far cry from its $150 valuation prior to the flash loan exploit, it shows consumer faith in the PancakeSwap native token.
On the date of publication, Brenden Rearick did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
