Dego Finance (DEGO) has recently experienced a significant price drop, with its value declining by approximately 50%. As of now, DEGO is trading at $1.34, down from an intraday high of $2.65.
š Understanding the Recent Price Drop
The sharp decline in DEGO's price can be attributed to a security breach that occurred in February 2022. An unknown hacker exploited vulnerabilities in Dego Finance and Cocos-BCX, draining approximately $14.4 million from both platforms. Dego Finance confirmed the attack and stated that their own liquidity address was compromised. Audit firm PeckShield suggested that this incident might have been a rug pull.
In response to the breach, Dego Finance coordinated with exchanges like Binance, KuCoin, and Gate.io to halt further deposits of its native token to prevent additional losses.
š Current Market Position
Despite the setback, DEGO maintains a circulating supply of 21 million tokens and is ranked #625 on CoinMarketCap, with a market capitalization of approximately $38.8 million. The token has seen some recovery, with a 24-hour trading volume of $3.41 million and a recent price increase of 9.07%.
š” Strategic Considerations Moving Forward
If you're considering re-entering the DEGO market, here are some strategies to contemplate:
Wait for Stability: Monitor the token's price movements for signs of stabilization before making any investment decisions.
Diversify Investments: To mitigate risk, consider diversifying your portfolio across multiple assets rather than concentrating solely on DEGO.
Stay Informed: Keep abreast of updates from Dego Finance regarding security enhancements and project developments.
Risk Management: Implement stop-loss orders to protect against potential further declines in token value.
Given the previous security concerns, it's crucial to approach any investment in DEGO with caution and conduct thorough research.
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