Top memecoins slid after Shiba Inu’s layer-2 network, Shibarium, suffered a $2.4 million flash loan attack, highlighting persistent security risks in joke cryptocurrencies.
The attacker used 4.6 million BONE tokens, the governance token of the Shiba Inu ecosystem, to gain temporary control over validator keys, approving unauthorized transactions and draining assets from the bridge linking Shibarium to Ethereum. The Shiba Inu team mitigated a larger breach, as the BONE tokens involved were locked by validator staking rules.
SHIB fell 4% to $0.00001369 and later traded at $0.00001359, with trading volume exceeding 1.064 trillion tokens. BONE initially surged past $0.36 but has since cooled to around $0.20, down over 2% in 24 hours. Technical analysis shows SHIB consolidating between $0.000013600–$0.000013780, with potential to test $0.000014000 resistance.
Dogecoin (DOGE) also weakened, dropping 4% to $0.2780 and further to $0.2736, exacerbated by a 119.3 million DOGE ($34M+) transfer to exchange OKX, likely signaling liquidation.
The hack underscores ongoing vulnerabilities in memecoins, reminding investors of the risks inherent in high-volatility tokens.
