Hackers compromised Cardano's X account last weekend to spread false claims about an SEC lawsuit and promote a fraudulent token, according to an announcement by the Cardano Foundation.
The cyberattack, which occurred on December 8, caused temporary confusion over Cardano’s native token, ADA. Ranked 9th, Cardano has dropped 6% in the past day, now trading at $1.14 with a market cap of nearly $100 billion.
The hacking incident began with a post announcing a new token called $ADAsol. The post falsely claimed it to be a Solana-based upgrade of Cardano’s technology.
Cardano Foundation’s X Account Compromised
The hackers elaborated on this fake initiative through a detailed 13-part thread, citing credible resources like the Cardano Foundation’s official podcast and website. The fraudulent $ADASOL token reportedly garnered over $500,000 in trading volume within an hour, only to crash by 99% when the truth emerged, Cointelegraph reported.
They falsely claimed that Cardano would cease all support for the ADA token to comply with regulatory requirements. The fake SEClawsuit created a wave of uncertainty in the crypto market, with ADA experiencing a brief drop in value.
Cardano’s Response
However, Charles Hoskinson, the founder of Cardano, quickly intervened to debunk the misinformation. “Looks like the CF account got hacked. Try harder hackers,” Hoskinson posted on X, reassuring the community.
Looks like the CF account got hacked. Try harder hackers https://t.co/DhT9PpgfZt
— Charles Hoskinson (@IOHK_Charles) December 8, 2024
In the aftermath, the Cardano Foundation acknowledged the breach, stating it was “actively working to restore security” to its X account. They clarified that none of their other social media platforms were affected and warned the community against falling for similar scams.
In the recent bull market, Cardano’s ADA token outperformed its peers with a 198% surge in value within a month. Its future performance could be linked to its vision, policy, and potential. Cardano’s meteoric rise from $0.4 to over $1.29 surpassed Bitcoin’s and Dogecoin’s gains. While the price has corrected, optimism persists as the market targets $2.
The price rally has pushed Cardano's Founder to promote better policies for cryptocurrencies. Recently, Hoskinson mentioned that he was spending time with lawmakers to promote better crypto policies. His approach includes executive orders, legislative strategies, and administrative reforms aimed at positioning the as a global leader in cryptocurrency.
Cardano is based on a proof-of-stake blockchain. The technology is designed to address scalability, interoperability, and sustainability issues in earlier technologies like Bitcoin and Ethereum. The company’s structure encompasses three organizations: Input Output Global, a technology and engineering company; the Cardano Foundation, a non-profit managing Cardano’s development and adoption; and Emurgo, its commercial and venture arm.
Cardano’s technical indicators currently show a potential short-term price correction. The Relative Strength Indicator (RSI) is currently at 67, showing that the token is close to the overbought zone and that further price correction is possible, although the price remains on an upward trend, according to the 50 and 200 moving averages.
In the Cardano ecosystem, ADA tokens are utilized for transaction fees, staking, governance, smart contracts, and decentralized applications. Fundamentally, Cardano has the potential to grow in the blockchain space, which could push the price to more than $2. However, as with the rest of the market, the current technical indicators signal further price correction.
This article was written by Jared Kirui at www.financemagnates.com.
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