After a front-end attack on the multi-chain decentralized exchange, aggregator KyberSwap, which was discovered the day before, the price of kyber network crystal (KNC), which is a utility token for the Kyber Network ecosystem, increased on Friday. The attack had taken at least USD 265,000 out of the exchange.
At 09:10 UTC on Friday, the value of one KNC dollar was 1.756. The value of the token increased by approximately 4% during the past 24 hours but decreased by approximately 3% over the course of the previous seven days. As a direct consequence of this, the token outperformed significant currencies such as Bitcoin (BTC) and Ethereum (ETH), which saw their values rise by 1% and 3%, respectively, during the course of the previous day.
An exploit of the DEX aggregator was identified on September 1, according to a message sent out by
This prompted the engineers working on KyberSwap to shut down the front end of the DEX aggregator. After conducting some preliminary research, the team came to the conclusion that Google Tag Manager had “malicious code.” According to the warning, this code “inserted a false permission, allowing a hacker to transfer a user’s funds to his address.” This information was provided by the alert.
In spite of the vulnerability, the price of kyber network tokens continues to climb due to the prompt response of the team that developed it.
The letter from KyberSwap went on to indicate that consumers lost a total of USD 265,000 due to the attack, however the company claimed that only two “whale” addresses on the Polygon (MATIC) network were affected.
“This attack was an exploit of the [front end], and there is no weakness in the smart contract. It is currently safe to use KyberSwap’s functions, although the alert recommended exercising extreme caution.
In the notice, it was stated unequivocally that any and all affected users will be paid for any losses they may have sustained.
In a statement that was published on Twitter, Kyber Network staff members provided the attacker with information regarding the relevant addresses and conversations. Additionally, centralized exchanges were advised of the situation. A warning was given to the effect that stated, “You will not be able to pay out unless you expose yourself.”
It is important to note that the exploit did not result in a decrease in the price of KNC. Instead, the price of the coin has been climbing steadily higher in the market over the course of the last day, mirroring the general trend seen in the cryptocurrency market.
The surprise reaction of the market to the breach could be explained by the fact that it appears to be relatively modest in compared to past assaults on DeFi protocols. This is one possible explanation. The prompt action taken by the team, its comprehensive explanation of what happened, and the fact that it has pledged to fully compensate any customers who were adversely affected are all additional possible contributing factors.
It is essential to keep in mind that the price of KNC did not go down as a direct consequence of the exploit. The price of the coin, on the other hand, has been slowly increasing in the market over the course of the last day, reflecting the general trend seen in the market for cryptocurrencies.
The market’s unexpected reaction to the breach could be explained by the fact that it looks to be very minor in comparison to other assaults on DeFi protocols. This could explain why the market reacted so unexpectedly. This is one explanation that might be given. Additional potential contributing factors include the prompt action taken by the team, its comprehensive explanation of what occurred, and the fact that it has pledged to fully compensate any customers who were negatively affected by the incident. All of these things came together to make the team’s quick response possible.