All there is to know about ‘spooked’ Fantasm Finance, XFTM’s 98% drop

ambcrypto.com:

A new DeFi project presents an opportunity for investors to become early adopters and reap the rewards of taking such a risk. On the other hand, things can go sideways and an exploit can quickly put an end to any tender hopes and dreams. Now, as a section of the Fantom community struggles to get out without getting hurt, here’s what you need to know.

Fantasm Finance, introducing a “Fractional-Algorithmic Synthetic Token” pegged to 1 Fantom [FTM] on Fantom Opera, saw a hacker exploiting its FTM collateral reserve. Later, the hacker took more than 1,000 ETH – roughly $2,620,546.31 at press time – and moved it into Tornado Cash, a mixer that makes it harder to trace the origin of crypto assets.

— PeckShieldAlert (@PeckShieldAlert) March 10, 2022

At press time, the Fantasm XFTM [XFTM] token had lost 98.06% of its value in 24 hours, and was worth just $0.02743. It was once worth $1.82. Meanwhile, Fantasm FSM [FSM] was trading at $4.37, having plunged by 70.65% in a day.

However, considering that the Fantasm Finance project only launched on 28 February this year, the early exploit triggered rumors among some investors about the project being a rug pull.

However, for its part, Fantasm Finance tweeted an apology and said that it was looking to publish a post-mortem of the incident. In the meantime, it warned investors to redeem their XFTM and leave liquidity pools immediately.

Adding to the confusion, Fantasm also announced that some of its collateral had been exploitedby a white hat hacker. No doubt many will be waiting to get their hands on the technical post-mortem