🔹 Exchange restarts operations, but user confidence is shaken

The decentralized exchange Cetus Protocol, built on the Sui blockchain, suffered a major attack on May 22, losing $60 million from its Concentrated Liquidity Market Maker (CLMM) pools. Despite quick action and freezing another $162 million in funds, many in the community feel abandoned and disillusioned.



🔹 Restart and bold messaging aren't enough – trust remains broken

Although the team announced a full restart on June 8 with a bold statement about "resilience and recovery," users remain divided. Critics fear token inflation, citing the release of 76 million $CETUS tokens, which they believe could severely devalue existing holdings.


🔹 Users report major losses and locked funds

Several investors say they've lost up to 30% of their positions. Others claim they still can't access or withdraw their liquidity. Some suspect that the token issuance is being used to cover liquidity holes caused by the attack – raising concerns over transparency and accountability.


🔹 Community backlash intensifies – scam accusations emerge

With growing frustration over slow recovery efforts and lack of clear communication, some users have gone as far as to label the project a scam. Critics argue that PR efforts are meaningless without real compensation, transparency, and user engagement.


🔹 What must Cetus do to regain community trust?

✅ Acknowledge mistakes and explain token issuance – why 76 million $CETUS were minted and what steps will be taken to reduce dilution. Committing to buybacks or token burns may help.

✅ Restore pre-hack positions and liquidity – including full user compensation.

✅ Release a detailed technical breakdown – showing how vulnerabilities were fixed and what security upgrades were made.

✅ Strengthen communication – frequent, open updates and direct engagement with affected users.

✅ Implement long-term security measures – with verifiable proof of enforcement.


🔹 Cetus’ comeback could become a turning point for DeFi

A successful recovery would prove that DeFi can learn from its failures. This isn’t just about recouping funds—it’s about restoring trust in the technology and its ability to provide fair financial infrastructure. If Cetus rises from this crisis with stronger commitments to transparency and security, it may ultimately emerge more resilient than ever.



#Cetus , #CetusProtocol , #cryptohacks , #DEX , #Cryptoscam

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