PancakeBunny is a decentralized exchange (DeFi) that allows investors to trade cryptocurrencies without intermediaries. The characteristic of DeFi exchanges is flexible transaction fees and high interest rates, which can be used to exchange for tokens that have not yet been listed on official exchanges, potentially doubling or tripling accounts when those cryptocurrencies go live.
However, DeFi exchanges are often a tempting target for hackers, which can lead to the complete collapse of the exchange beyond recovery. Recently, PancakeBunny (Bunny) was attacked by hackers who stole a large amount of Bunny tokens before manipulating the price and dumping them on the market.
At that time, a large amount of Binance Coin was purchased in the Bunny/BNB pair, causing the value of Bunny to drop by as much as 96% from over 240 USD to 150 USD and even down to 0 USD in nearly 30 minutes.
The Bunny/BNB pair was compromised, including 697,000 Bunny tokens and 114,000 BNB, estimated to be worth nearly $200 million at the time of withdrawal.
The development team quickly regained control, emphasizing that investor deposits totaling over $1 billion remain safe. The Bunny token briefly recovered to $100 before dropping to $30 at the current time.
The fact that cryptocurrencies become targets for hackers is not new. A common solution is to update to a new version (hard fork) to split the stolen amount into a new token that has no liquidity and is worthless.
Bunny was attacked at a time when the cryptocurrency market was suffering from multiple soft attacks, causing the market to evaporate hundreds of billions of USD. Currently, the market shows signs of recovery with Bitcoin reaching a value of 42,000 USD and a total market capitalization of 1.8 trillion USD.