• dYdX experienced a breach, urging users not to interact with its website.
• DYDX token dropped over 4% after the recent breach, reflecting market concerns.

On 23rd July, decentralized perpetual exchange dYdX announced through social media that it experienced a security breach.

This incident emerged shortly after Bloomberg reported that dYdX v3 was being put up for sale. 

What happened?

Issuing a warning to its users and the wider crypto community, dYdX shared the news on X, alerting everyone to the potential risk and said, 

“Please do not visit the website or click any links until further notice. An update will be provided when available.” 

Reassuring users, the dYdX team confirmed that version 4.0 on Cosmos is secure and continues to function without any issues.

“This message does not relate to dYdX v4.” 

Should users be concerned?

Notably, despite the reported compromise, the smart contracts of dYdX v3 remain secure and unaffected.

However, as a precaution, users are advised not to withdraw funds or interact with the website dydx.exchange until further updates are provided to prevent any potential issues or exploitation.

Worried about the situation, those associated with the exchange commented,

“Are funds safe at least?”

Similar incidents

In fact, recently, WazirX, India’s largest cryptocurrency exchange, also experienced a major hacking incident. The exchange revealed that a security breach had allowed hackers to steal over $230 million worth of digital assets. 

These incidents highlight how the growth of the crypto space comes with its own set of challenges. Additionally, it also serves as a stark reminder of the critical importance of cybersecurity in the crypto world. 

Impact on the token

Following the incident, the governance token for dYdX, ethDYDX, has seen a decline of over 4% in the past 24 hours, according to CoinGecko.

Additionally, X user Carlitos has pointed out that the price of $DYDX is anticipated to fall below its previous all-time low on the weekly chart.

Adding to the fray, Nick Cote, the co-founder and CEO of Second Lane, offered a concise summary of the situation when he stated,