BSC Defi Pancake Bunny Dumps Over 80% From Flash Loan Attack

0 29

Written by

I have just started getting into crypto and want to help others in the journey as I progre... [more]

3 years ago

Topics: Publish0x, News, Crypto Markets, Market, Crypto news, ...

Thumbnail source: https://pancakebunny.finance/

Pancake Bunny (BUNNY), the native token of Binance Smart Chain (BSC) Defi Pancake Bunny, has dropped over 80% from a flash loan attack of its service.

Brief Analysis

No data is provided on the trends of BUNNY within TradingView, most likely from the fact that it is not from any live exchange (e.g. Binance and KuCoin), so the data for this analysis will be done from CoinGeckos graphs in one year, one month and one day.

Going out to 1 year, the drop becomes instantly frightening. First, there is the slow steady bumpy track at the beginning, then a spike in BUNNY, following a quick tumble downwards to a decent net gain from its original position. After this tumble, BUNNY begins a steady rise upwards, gaining great momentum around April, almost doubling from about $220 at the beginning of the month to a high of about $480 near the end of April. When BUNNY reaches its peaks, it quickly drops at the start of May, creating a resistance point around $350. This goes on for several days, though the resistance becomes weak as BUNNY trickles downwards, gaining momentum at the start of this week, most likely from the recent crash. Then BUNNY dumps, and it a frightening straight line downwards. However, there is some tail upwards at the end, indicating a recovery.

Zooming into 1 month, or the last 30 days to be more exact, the dump becomes less exaggerated, though it is important to note the scale of the graph, which might be deceiving. Overall, BUNNY looks quite stable, facing some good momentum to its ATH (All-Time Highest) of $512.75 at the beginning of the month, falling to its original position before the bullish run and stabilising at this point. BUNNY looks to be stable then, but there is the trickle downwards, and then the crash.

When going in the last 24 hours, the crash becomes extraordinary. It virtually a straight line downwards, turning a hard right at its ending point to make a strong right angle. After the crash, BUNNY appears to have stabilised, a few hours later bumping up in price from around $10 to just under $30. Currently BUNNY is still at the stable area of $30. It is expected to recover to its original position in due time, though it is important to note that it is not guaranteed.

The current statistics of BUNNY are as follows:

Price - $27.53 (-81.8%)
Market cap - $14,491,243
Market cap dominance - 0.00%
Trading volume - $1,723,394,582
24h low / 24h high - $6.13 / $157.85
Market cap rank - 821st

The Situation

BUNNY's response to the crash is considerably well, responding quite quickly with reassurance to calm FUD (Fear Uncertainty Doubt), which would be high in the current situation of an enormous crash. They released two announcements on Twitter on the crash soon after the flash loan occurred, outlining what the situation was that caused the great crash of BUNNY. The BUNNY team are promising to have a deep analysis later. For the tweets of BUNNY, visit here: https://twitter.com/PancakeBunnyFin.

Anyhow, this is how the BUNNY team explained the situation, done in five steps:

1. A large amount of BNB was borrowed on PancakeSwap from the hacker

2. The hacker manipulated the price of USDT/BNB and BUNNY/BNB

3. The hacker managed to get a huge amount of BUNNY from the flash loan

4. The hacker dumped all the BUNNY in the market, thus creating a surging supply to crash the price

5. The hacker paid the BNB back via PancakeSwap

The transactions are done that contributed to the flash loan attack can be found here: https://bscscan.com/tx/0x897c2de73dd55d7701e1b69ffb3a17b0f4801ced88b0c75fe1551c5fcce6a979