60% drop in Karim Finance price; What was the cause?
The price of Cream Finance has dropped by more than 60% since the attack on the digital currency protocol. Experts believe that Karim Finance’s recent decision to offer 1.45 million new tokens and compensate the victims of the attack is one of the main reasons for the widespread fall in the price of this digital currency.
to the Report Kevin Desk, the price of the Karim Finance token, a lending protocol and active money market in decentralized finance (DeFi), fell sharply yesterday for the second time in 30 days.
The first time was when some tokens were stolen from the Karim Finance Fund during a hacker attack. This time, however, the fall in price occurred after Karim Finance announced its plan to respond to the victims of the hacking attack.
Karim Finance has said it intends to deposit 1.45 million CREAM tokens from its protocol coffers to the accounts of victims affected by the attack to compensate victims. While the total supply of Karim Finance is 9 million tokens, only 150,000 units are currently in circulation in the digital currency market. The rapid increase in the volume of tokens in circulation will certainly have a negative effect on the demand and price of this digital currency.
The price of Karim Finance fell from $ 88 to $ 51.78 yesterday, and now each unit of this digital currency trades around $ 56. Prior to October 27 and the attack on the Karim Finance network, each unit of this digital currency was priced at more than $ 152; That means the price has dropped by about 63 percent since then.
Perhaps the main reason for the sharp decline in prices yesterday is that most of the stolen tokens from Karim Finance were from major currencies on the market, such as Atrium. Reimbursement of victims with the main token of the lesser-known Karim Finance network is probably not to the liking of investors; Even if the sudden release of this volume of tokens in the market does not affect its price.
However, since the victims of such attacks usually do not receive anything in return, low-value tokens will be better than nothing.