Visor Finance (VISR) has been on a free fall since Tuesday, December 21. It has dropped by over 95.01% in the last 24 hours.
The fall has taken most crypto traders and investors by surprise, especially since most were expecting the price to move above $1.0 by the end of the year.
Here is a detailed overview of what is causing the drastic fall.
What is Visor Finance (VISR)?
Before delving into what is causing the free fall, it is important we first shed some light on what Visor Finance is.
Visor Finance is a Uniswap based protocol that is specialized in NFT smart vaults for liquidity provisioning. It predicts the DeFi ecosystem where market conditions can unlock liquidity from networks of independent smart vaults.
Millions of tokens hacked
The Visor team is trying to address the issue of the exploit by hackers to withdraw 8.8 million Vvisr, but the price has continued to plummet. Earlier today on Twitter Visor Finance team called attention to the matter. The hack was targeting the vVISR staking contract to re-enter hack to double mint vVISR for the tokens to be limitlessly minted and free.
We are aware of an exploit of the vVISR staking contract and are implimenting a migration plan for affected VISR. No positions or hypervisor’s are at risk.
— Visor Finance (@VisorFinance) December 21, 2021
Since there is a protocol that states that no positions or hypervisors are at risk from the exploit and that affected stakers would get their tokens back, the team announced that it will apply the ‘’token migration’’ based on the pre-exploit protocol.
The team said:
“Trades subsequent to the vVISR exploit will not affect your redeemable amount,”
The exploit has impacted the vVISR price negatively after the hacker sold all the tokens through Uniswap and used Tornado Cash, a non-custodial privacy protocol built on Ethereum, to conceal his identity and trace.
However, this is not the first time Visor has experienced a major hack, In June $500 million was stolen from the network which was about 16% then. A similar scenario had happened in the SquidGame where the scammer escaped with the stolen funds without a trace in October.
Defi Hack on the rise
There have been rampant hacks and scams in crypto over the past year.
One of the biggest DeFi hacks took place this August when crypto worth $600 million was stolen across multiple networks like polygon, Binance Smart Chain, and Ethereum becoming one of the greatest dollar-dominated hacks in history.
