New Free DAO Was Reported Flash Loan Attack, NFD Token Dropped By Over 99%

According to PeckShield, the DeFi project New Free DAO lost over $1.25 million in a flash loan assault. The NFD token’s value has decreased by more than 99%.

PeckShield, a blockchain security business, has informed the crypto community that the New Free DAO project has likely lost $1.25 million. According to the company, the project was likely the victim of a flash loan assault, which caused the NFD token value to decrease by more than 99%.

The attacker has stolen $1.25 million in BNB and exchanged it for BSC-USD. The token, established on the Binance Smart Chain (BSC), was a DeFi token that appeared to be centered on the NFT niche and provided a slew of features.

However, the project does not appear to have a particularly strong reputation in the cryptocurrency market. There isn’t much information on it, but it looks to have been popular enough to lose more than a million dollars.

Flash loan attacks are a common type of attack in the DeFi domain, and various projects have been targeted. They operate by effectively influencing prices following the attacker’s uncollateralized loan. They are popular because they are relatively simple to execute.

Recently, a flash loan attack has targeted an increasing number of projects. A flash loan attack on the Avalanche blockchain resulted in the theft of $370,000 from a smart contract and liquidity providers, according to blockchain cybersecurity firm CertiK. Curve Finance is thought to be among those impacted.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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