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This Token Plummeted 98% Within Minutes After a Major Security Incident

2 mins
Updated by Ali M.
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In Brief

  • Serenity Shield's SERSH token crashed 98% after a $5.6 million theft from a MetaMask wallet.
  • Trading of SERSH halted; plans for a new token announced to compensate holders.
  • Community's criticism arises over security measures, impacting the project's credibility.
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Serenity Shield, known for its “secure private data storage” solution, witnessed its token, SERSH, crash by 98% within minutes. This sharp decline followed a security breach where about 6.9 million SERSH tokens, worth $5.6 million, were stolen from a team’s MetaMask wallet.

The team announced plans to relaunch the token with a new contract without specifying a timeline.

Aftermath of the Serenity Shield Incident

Responding to the incident on February 27, Serenity Shield halted all trading, deposits, and withdrawals of SERSH on centralized exchanges.

Moreover, the plans for a new token aim to protect the community’s interests and restore faith in the project’s security measures. The Serenity Shield team also assured that holders of SERSH would be compensated with new tokens on a 1:1 basis, with further details pending.

“We are implementing a new SERSH token through a robust smart contract to safeguard our ecosystem. Our team is actively addressing the situation, and further details will be provided as soon as they are available,” the team said.

The exploit, which transpired at around 9:00 am UTC on February 27, led to a dramatic price crash from $0.565 to $0.006 within minutes. Nevertheless, the token has recovered and is currently trading at $0.162. This still represents an over 80% decrease in value over the past 24 hours.

Read more: 9 Crypto Wallet Security Tips To Safeguard Your Assets

SERSH Price Performance
SERSH Price Performance. Source: BeInCrypto

The project’s inability to protect its tokens has attracted criticism, especially given its focus on secure data storage. The breach contradicts Serenity Shield’s foundational promise of security, leading to public outcry and skepticism among the crypto community.

“If holders’ safety was a priority, you wouldn’t use a Metamask hot wallet for securing vested tokens. Anyway, SERSH is basically dead, the fundamental of the project is based on safety but they can’t ensure their own safety. Irreparable damage to the coin’s reputation and a disaster for the partners who trusted it,” Hamster Altcoins wrote on X.

Read more: Who Is ZachXBT, the Crypto Sleuth Exposing Scams?

This incident highlights the persistent vulnerabilities in the crypto industry, such as code exploits and the risk of private key compromises. Moreover, it occurs amidst growing concerns over BitForex’s activities, which some fear could indicate an exit scam. ZachXBT, an on-chain detective, has pointed out BitForex’s suspicious outflows and withdrawal suspensions, adding to the industry’s unease.

Top crypto projects in the US | April 2024

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Harsh Notariya
Harsh Notariya excels in delivering SEO-optimized crypto news under tight deadlines. Previously, as a Growth Marketer at Sporty and a Community Consultant at Totality Corp, he significantly boosted community engagement and followers. Harsh also crafted engaging content for top crypto influencer Shivam Chhuneja, blending meme references for an educational yet fun experience. His versatile skills make him a notable figure in crypto journalism.
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