The Candy token, associated with the liquidity protocol Lena Network, witnessed an overwhelming loss of value, dropping more than 87% after a staggering $2.9 million in Ethereum vanished from its reserves. This dramatic plunge occurred concurrently with the protocol’s new user onboarding. Dexscreener data revealed a severe decline from $3.08 to $0.38 within a day.
Lena’s Surprising Ethereum Transfer and Ownership Relinquishment
Blockchain analytics traced the downturn to a hefty Ethereum transfer from the Lena Network distributor’s address to an OKX exchange-affiliated address. Notably, this transfer of 753.11 Ethereum happened shortly before Lena Network’s public declaration of forfeiting control over the token contract. As of the latest reports, the protocol’s team had not issued a statement concerning the event.
Crypto Market Under Threat from Scams
The crypto industry has been facing a disturbing trend of rug pulls and hack attacks, raising alarms among investors. A recent study by Immunefi highlighted over $200 million in losses due to these nefarious activities in 32 reported events in 2024. February’s figures indicated a startling 50% decrease in thefts compared to January, yet the total losses since the year’s start show a 15.4% increase from the same period in 2023.
The crypto community remains on edge as these security breaches continue to undermine trust in the market. With $1.8 billion lost to such incidents in 2023, of which 17% were attributed to the notorious Lazarus Group from North Korea, the frequency and magnitude of these crimes are significant causes for concern among digital asset investors.