On June 3, 2025, $DEGO experienced a price crash, dropping nearly 49% within an hour. The sudden plunge was mainly due to a hacker attack. The specifics are as follows:

- Hacker attack led to liquidity crisis: Dego Finance announced that it was attacked by hackers, and its DEGO liquidity on UniSwap and PancakeSwap was depleted. According to the official statement from Shield, the hackers stole over $10 million from the NFT+DEFI aggregator Dego Finance and the gaming digital economy platform Cocos - BCX. The hackers are suspected of stealing Dego's private keys, which allowed them to withdraw its LP liquidity, causing the DEGO price to plummet significantly due to the liquidity crisis.

- Market panic triggered sell-off: The hacker attack triggered panic among market participants. Investors became concerned about the security and future development of Dego Finance, leading them to sell off their DEGO tokens, further exacerbating the price decline.

In addition, the cryptocurrency market itself is characterized by high uncertainty and volatility, and the sudden plunge in DEGO price may also be influenced by the following factors:

- Impact of large sell orders: If one or more large holders ("whales") sell a significant amount of DEGO, it could result in sell orders far exceeding buy orders in a market with low liquidity, leading to a sharp price drop.

- Influence of overall market sentiment: If the entire cryptocurrency market is in a downturn or uncertain state, the price fluctuations of smaller market cap altcoins like DEGO may be amplified.

- Triggering of automated trading and stop-loss mechanisms: Algorithmic trading robots responding to the initial price drop may trigger further sell-offs, and a large number of stop-loss orders being activated could also push the price down rapidly.