The rise in cryptocurrency popularity has led to increased interest in digital assets, but also higher risks of hacking and scams due to sophisticated technology used by malicious actors.

Prisma Finance temporarily stopped its services due to a theft of $11.6 Million and has now announced plans to resume operations with enhanced safety measures.

To restart the borrowing feature, a consensus will be required through an ongoing voting process within the Prisma Finance ecosystem. Core contributor Frank Olson proposed a method to safely reactivate the protocol, allowing users to deposit liquid staking tokens (LSTs) and liquid restacking tokens (LRTs), as well as borrow stablecoin with overcollateralization.

According to Frank, lifting the pause on the protocol is crucial for the recovery process and will restore normal operations, including full Vault management and deposits into the Stability Pool.

Other Updates

Prisma Finance fell victim to hackers on March 28, resulting in a theft of cryptocurrency worth around $10 Million. The attacker transferred the stolen funds to Ethereum following the initial breach.

A report from Immunefi reveals a 23% decrease in losses from Web3 hacks and scams in Q1 of 2024 compared to the same period in 2023, with total losses amounting to $336 Million and $437 Million, respectively. Hacks accounted for 96% of the losses, while scams and other activities made up 4%.

Biosin, a blockchain security firm, predicts a 35%-40% increase in cryptocurrency breaches in Q3 of 2023, with DeFi projects being the primary target. Among all project types, the public chain experienced the most significant losses.

Cryptocurrency Market Update

The total cryptocurrency market capitalization decreased by 2.55% in the last 24 hours to $2.403 Trillion, marking a 6.10% decline over the past seven days. However, the market has seen a 47.47% increase in the last quarter.

Top gainers in the intraday trading include Pendle (PENDLE) with an 11.30% surge, Bitcoin Cash (BCH) at 4.05%, and Toncoin (TON) at 2.62%.

Ethena (ENA) had seen significant growth in recent weeks but experienced a 21.91% decline in the last 24 hours, making it the top loser intraday.

Bitcoin lost 4.95% of its value over the past week and was trading at $66,759, while Ethereum, the second-largest cryptocurrency, dropped 2.41% intraday and was priced at $3,264.

Disclaimer

The information provided in this article, including views and opinions expressed by the author, is for informational purposes only and should not be construed as financial or investment advice.