- The oldest Indonesian exchange is hit with a $22M hot wallet hack.
- Shiba Inu coin’s total crypto exchange reserves are historically low.
- The SHIB community is moving towards a sovereign digital identity.
Indodax, the largest and oldest cryptocurrency exchange in Indonesia, was taken offline on September 11, 2024, after a massive hack of $22 million struck the platform. Amidst the affected cryptocurrencies, Shiba Inu (SHIB) appears on the list along with a flurry of other altcoins.
Another Major Exchange Bites the Dust?
This marks the second case in three months in which a major centralized exchange (CEX) has been hacked, putting a massive amount of SHIB at the epicenter of the digital incident. According to the investigation by the blockchain security firm SlowMist, the fraudsters ran away with 9,000,789,097 tokens worth approximately $120K as of press time.
Moreover, as the ongoing investigation into the exchange’s hot wallet security breach continues, popular on-chain sleuth ZachXBT remarked that he received a confirmation from Indodax’s co-founder that all stolen funds will be reimbursed. The exchange will cover the loss.
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The $22M hot wallet hack also included $1.41M worth of Bitcoin (BTC), $2.48M worth of Ethereum (ETH) , and $2.36M worth of Tether USD (USDT), among several other popular altcoins. Upon further research by DailyCoin, it was discovered that most of these stolen funds have already been converted into over $13M of Ether.
SHIB Exchange Reserves Hit All-Time Lows
The latest exchange hack coincides with plunging Shiba Inu reserves on crypto platforms. According to the blockchain intelligence platform CryptoQuant, this metric has gradually dropped from 2022, but the trend has accelerated to unprecedented levels since the beginning of 2024.
Starting this year with 165.43T Shiba Inu coins in crypto exchange reserves, the coin’s exchange treasury has been deducted by 22.5 trillion tokens. With 142.95T SHIB tokens remaining in all exchange reserves, this trend aligns with Shiba Inu’s decentralization crusade.
With various DeFi-focused products, Shiba Inu coin’s developer team seeks to put SHIB custody in the hands of Shibarium’s chain users through cold wallets and sovereign digital identities. For this reason, SHIB Token had partnered with D3 Global, a Web3 name startup, to set up a cross-platform identity that would be easily memorable due to the .SHIB suffix.
At publication, SHIB is exchanging hands at $0.00001335. Shiba Inu coin’s price kept under consolidation for the past week, picking up slight gains of 0.6% over the past 24 hours.
On the Flipside
- The magnitude of Indodax’x $22M hot wallet hack could be far less than WazirX’s hack a few months ago.
- Indodax’s hot wallet still shows over 1T SHIB tokens on hand, five times less than the 5T SHIB robbery in July 2024.
Why This Matters
The rising exchange hacks stimulate a new trend where crypto enthusiasts are eager to find alternative ways of holding their crypto, such as self-custodial or offline wallets.
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