Tapioca DAO, a decentralized money market platform, has become the latest victim of a major cryptocurrency hack. In a well-coordinated attack, hackers managed to steal approximately $4.5 million worth of assets, leading to a dramatic 97% drop in the value of the platform’s native token, TAP. The attack sent waves of panic through the community as the TAP token crashed from $1.50 to below $0.04 in a matter of minutes.
How the Hack Unfolded
The hackers gained access to the DAO’s vesting contract and stablecoin protocol, draining not only TAP tokens but also significant amounts of USDC and Ethereum. Reports indicate that the attacker stole 30 million TAP tokens along with $2.8 million in USDC and $1.57 million worth of Ethereum, which were then converted to USDT and transferred to the Binance Smart Chain, making it difficult for authorities to trace the funds.
The initial shock of the hack caused an explosion in trading volume as desperate investors tried to salvage what they could. With TAP’s value nearly wiped out, many fear long-term damage to the platform’s credibility, despite efforts to recover lost assets.
Recovery and What’s Next for Tapioca DAO
Despite the scale of the attack, the Tapioca DAO team has not been idle. In collaboration with security experts, they managed to secure 1,000 ETH, worth about $2.7 million, in an attempt to recover some of the stolen funds. This was a vital step, but it’s clear the platform still faces an uphill battle.
The team is urging its community to stay cautious and avoid interacting with the platform until further details are released. There’s also talk of reissuing the TAP token, but whether that will restore trust in the platform remains to be seen. For now, the team is working tirelessly to figure out what went wrong and how to prevent similar incidents in the future. While some funds have been secured, the damage – both financially and in terms of trust – is undeniable.
This isn’t the first major hack this week – earlier, we covered a $50M hack on Radiant Capital.
