New Free DAO collapsed 99% due to flash credit exploit

The price of DAO's native token, NFD, dropped 99%. And the DeFi project itself lost $1.25 million due to a compromised loan. 

The attacker absconded with $1.25 million worth of BNB tokens & then exchanged them for BSC-USD. The token was created on the BSC network of the same name & was needed for the DeFi niche of Stablecoin. That said, it was focused on NFT, providing more features.

Although this project did not have an enduring reputation underneath, due to its lack of popularity. But apparently, it had a sufficient user base to be hacked for a million dollars.

Flash credit attacks r quite popular. After all, they work by essentially manipulating prices after the attacker takes out an unsecured loan. They r relatively easy to pull off, hence their popularity.

The DeFi market has always been a favorite prey of attackers because of the large amount of capital that goes into it. New projects & protocols with a low level of security (although they can be pretty secure) and, of course, novelties are common targets for cybercriminals.