- Solana-based DEX Cypher announced plans to sell tokens to fill its treasury
- Investors will be issued a debt token to get their money back
- Cypher lost more than $1 million in a hack on Aug 7
Solana-based DEX Cypher announced plans to sell tokens in an effort to recover from a debilitating exploit, in which it lost more than $1 million in different assets, CoinDesk reported.
Cypher will use the revenue from the token sale to fund project development and fill the treasury. According to its expedited initial decentralized offering (IDO) plan, the DEX will issue investors a debt token so the latter can get all of their money back as the protocol’s value increases – assuming that it does.
Rapid development before hack
The new plan aims to check whether Cypher can regain the momentum of the summer, when it ranked among the fastest growing protocols on Solana. The Solana blockchain has not hosted a major IDO in some time, at the expense of ChatGPT-related initiatives.
Sale has uncommon public tilt
The tokenomics of the sale feature an uncommon tilt toward the public. Almost half of all tokens will be sold to public investors. About a quarter are earmarked for the Cypher team, 12% for growth incentive programs, 11% for private investors, 7.3% for token airdrops, and 1.2% for advisors.
Airdrop management mechanisms are not clear at this point. Before the August 7 hack, a points system was in place to measure customer activity. Some Cypher users expect the platform to continue using activity to gauge airdrop performance. Cypher will airdrop 50 million tokens to customers who lost money in the exploit.
The hacker tried to cash out via Binance
The crypto wallet suspected to be linked to the hack stole around 38,530 SOL and $123,184 worth of USD Coin, coming to a total of more than $1 million.
Shortly after the attack, the wallet transferred 30,000 USDC to kiing.sol, which is Solana’s USDC address oncrypto exchange Binance.
Recovery measures
Cypher will use the funds which weren’t stolen to refund impacted users, which will happen at 31 cents on the dollar. The protocol was able to freeze $600,000 of stolen crypto in centralized exchanges.
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