Kyber Network Price Plunges After Withdrawal Alert

• Kyber Network’s token, KNC has dropped 2.26% today.
• The protocol advised its liquidity providers to withdraw funds citing market vulnerability.
• This news comes at a time when vulnerabilities and exploits have become rife across the DeFi space.

Kyber Network Price Dips After Withdrawal Alert

At press time, the price of Kyber Network Crystal v2 (KNC) had dropped 2.26% today. Kyber’s Elastic product’s Total Value Locked (TVL) has plunged to $61 million yesterday after the protocol advised its liquidity providers to withdraw funds citing market vulnerability.

Potential Vulnerability Found

Kyber Network confirmed the potential vulnerability via a tweet although it noted that no product has been affected and no funds have been lost so far. On Sunday, Kyber Network’s KyberSwap Elastic product had $108 million in total value locked (TVL). However, that figure had dropped to about $30.88 million on Monday according to DefiLlama.

Vulnerabilities & Exploits on the Rise

The news comes at a time when vulnerabilities and exploits have become rife across the DeFi space. The most recent hack includes the $196 million Euler Finance hack, the $23 million Bitrue exchange hack, and the recent Yearn Finance hack. In 2022, Kyber Network was also hit with a $265,000 exploit.

Conclusion

Kyber Network is one of many protocols that are being targeted by hackers in 2021 as they continue to look for opportunities to steal crypto assets from users around the world. Despite this incident, there is still confidence that proper security measures will eventually be put in place to protect users from malicious actors in future attacks against DeFi platforms like Kyber Network and others alike.

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