Kava token falls 40% after Kava Lend incident as exchanges halt withdrawals

Crypto News

Kava token falls 40% after Kava Lend incident as exchanges halt withdrawals

Topics in article

Altcoins

Kava's native token fell more than 40% intraday on Nov. 14 after the project flagged unexpected on-chain activity in its DeFi ecosystem. Upbit, Bithumb and Coinone suspended KAVA deposits and withdrawals, and Kava paused its Axelar bridge as a precaution.

KAVA crashed more than 40% intraday on Nov. 14 after the blockchain project flagged unexpected on-chain activity involving an application in its decentralized finance ecosystem. The project said the incident involved unusual cross-chain transfers and sales of KAVA on BNB Smart Chain.

The project said the incident was isolated to Kava Lend, its lending and borrowing protocol, and was not the result of an infinite mint. The project also addressed reports of KAVA tokens being bridged to and sold on BNB Smart Chain, which contributed to the token's sharp decline.

Exchanges responded. Upbit, Bithumb and Coinone suspended KAVA deposits and withdrawals while assessing the situation, according to a notice. Upbit also issued a caution notice and placed the token on its delisting watchlist, while Bithumb and Coinone halted transfers as a precaution.

Kava also paused its Axelar bridge as a precaution, which halts cross-chain asset withdrawals through the service. The team said it would publish a complete incident report once it was ready.

According to CoinGecko, KAVA's price dropped from about $0.068 to $0.041, a decline of 41% in the last 24 hours.

Source: Crypto Briefing

Trading involves risk.

Author

PrimeXBT

Our Editorial Team consists of leading experts with a proven record in the fields of trading, cryptocurrencies, blockchain and finance. We thoroughly research the sources of information in order to provide readers with quality content that serves edu...

Read author’s articles

Risk Disclaimer

Disclaimer: Some past publications may be outdated. We recommend following our news to stay up to date with the latest information. For any questions, feel free to contact our support team via the chat below.
The content provided here is for informational purposes only. It is not intended as personal investment advice and does not constitute a solicitation or invitation to engage in any financial transactions, investments, or related activities. Past performance is not a reliable indicator of future results.
The financial products offered by the Company are complex and come with a high risk of losing money rapidly due to leverage. These products may not be suitable for all investors. Before engaging, you should consider whether you understand how these leveraged products work and whether you can afford the high risk of losing your money.
The Company does not accept clients from the Restricted Jurisdictions as indicated in our website/ T&C. Some services or products may not be available in your jurisdiction.
The applicable legal entity and its respective products and services depend on the client’s country of residence and the entity with which the client has established a contractual relationship during registration.