On March 14th, Roll, a social money platform, saw the value of several social tokens minted and distributed on their platform sink by more than 50% due to a hack. The attacker targeted tokens such as WHALE, RARE, and PICA, making off with almost $ 5.7 million.
Whaleshark, the prolific NFT investor and founder of WHALE, took to Twitter to notify followers about the hack, saying,
"We were fortunate that this hack was minimally detrimental to the project despite the large price volatilty (due to the level of liquidity on Uniswap) and will find a way to absorb this so it has zero impact on our short, mid and long term growth of $WHALE."
Roll has responded to the hack by suspending all withdrawals of social money from its wallets and has set up a $500,000 fund to help out affected creators and communities.
WHALE Assets Compromised Due To Roll Hack
$WHALE is a social coin backed by their NFT assets. 2.17% of $WHALE was compromised through a hack on the hot wallet of Roll, which is their social token issuer. $WHALE token had reached a value of $52, dropping to as low as $3 due to the hot wallet hack.
Whaleshark secured the rest of their tokens, including tokens allocated for community distribution and the Whale Vault, in cold storage. Providing full transparency, Whaleshark took to social media platforms, Twitter and Discord, to keep community members updated and addressed the community's concerns and questions via discord.
$WHALE Exercises Caution Immediately
Whaleshark stated on Twitter that their cold wallets and the $WHALE Vault are secured with a high level of diverse and deep security measures. Whaleshark reassured community members on Twitter by further adding,
"This will not have a material affect on $ WHALE's short, mid or long term plans and the price is recovering. We will absorb the 2.17% in a manner that will not affect the whitepaper stated tokenomics. We are not hard forking, burning or re-setting. $WHALE is here to stay."
Whaleshark Focuses On Silver Linings and Learnings
Whaleshark focused on the advantages gained from the crises and addressed them on a Twitter thread. They stated that there is a significant increase in $WHALE holders and Whale community membership.
Whaleshark has received strong community support leading to their social media channels being flooded with "in whale we trust" messages. Their discord community is now 10,600 members, strong and growing.
Even though the token value dipped to a low of $3, $WHALE received market validation within a few hours of the hack as their token rose to ~$29.50. This can be attributed to $WHALE leadership using the crisis as an opportunity to step up and live up to the obligation of providing transparency in a timely and decisive manner.
Whaleshark further stated their learnings in a tweet, saying:
"Learning: We will be reviewing through all our security measures and protocols moving forward and more importantly, holding our partners to those very same standards. While nobody saw this coming, this could have been avoided. We can and will do better."
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.