The crypto market has faced a number of challenges in 2026.
As an example, in July alone, hackers exploited crypto assets worth $59 million, bringing the total amount of hacks since 2026 to over $1 billion. The Midnight network is the latest victim of this rash.
Midnight suffers a cross-bridge exploit
Midnight Foundation, along with on-chain monitoring teams, reported an incident that affected the Wanchain Cardano to BNB cross-chain Bridge.
The contract was dated 2 years ago. 515 million NIGHT was hacked, and all tokens were drained from the custody backing Wanchain-wrapped NIGHT on BNB.
Thereafter, The funds have been transferred to Cardano Dexs via new wallets. The attacker is expected to continue selling the tokens.
The wrapped NIGHT is no longer backed on BNB, even though the supply of this product remains unchanged. Then, there is the Midnight Foundation Clarified that Midnight’s network itself was secure and the incident only affected cross-bridge traffic.
Night plummets under extreme pressure to sell
NIGHT’s token experienced a steep drop after the security breach. It dropped 32% to a new low of $0.0015, before recovering slightly and reaching $0.019 when this article was written. Over the same time period, the market cap fell 27%, to $324 millions, and the trading volume soared 829%, to $131,000,000.
Increased sell-side activity was accompanied by a rise in volume and a decline in price. Selling pressure increased as attackers sold.
Other holders were panicked by the news and closed out their positions quickly.
The Sell volume on the Spot market increased by 624 Million in the past 24 hour. In the Futures Market, a similar pattern was seen. As a result of traders leaving the market, Futures Outflows grew to $67.4 millions.
Inflows fell to $62.3 millions, while Netflow dropped 1000% to $5,1 million. According to the funds, most traders have turned negative and are closing positions.
What is next for Night?
NIGHT has been under a strong negative pressure recently, due to the fact that most participants in the market have reduced their exposure.
In light of this, Relative Strength Index for altcoins (RSI) has crashed to oversold levels, dropping as low as 17 at the time of press. The RSI was at extreme lows, confirming that sellers were in charge.
These market conditions indicate that the possibility of further weakness is high. Midnight’s price will remain below $0.02, with support at $0.015 if the negativity persists.
Final Summary
- Midnight was drained of 515 millions NIGHT by a bridge crossing. Wanchain Cardano bridge to BNB
- The price of NIGHT fell 32% and reached a record low $0.015 during a period of intense panic buying.
“This article is not financial advice.”
“Always do your own research before making any type of investment.”
“ItsDailyCrypto is not responsible for any activities you perform outside ItsDailyCrypto.”
Source: ambcrypto.com
