Key takeaways
What caused the Astra Nova to crash at 65%?
18 hacker-linked wallets abandoned 890 million RVV tokens worth $10.66 million following the Binance Alpha listing.
Can RVV recover from this crash?
Recovery depends on security patches and the team’s token buyback program.
Astra Nova (RVV) hit a new all-time high of $0.03 after listing on Binance Alpha, before seeing a sharp decline.
In fact, at the time of writing, Astra Nova was trading at $0.0105, down 65.5% in 24 hours. At the same time, its market capitalization fell 65%, to $10 million, reflecting massive capital flight.
But what triggered this decline?
18 Astra Nova wallets pour out 890 million RVV
Surprisingly, after being listed on Binance Alpha, some Astra Nova investors made a coordinated exit from the market.
According to Lookonchain, after being listed on Binance, 18 wallets abnormally drained 890 million RVV worth $10.66 million.
Source: Lookonchain
Some of these tokens are worth $8.4 million to Gate and Kucoin, indicating a coordinated exit from the market.
While these transfers led to the exit of insiders, the Astra Nova team accused a malicious attack.
A malicious attack
According to the Astra Nova team, after the launch, the team’s MM (third party) account was hacked and the hackers took control.
These hackers began selling the assets of 18 wallets linked to the account. Despite the hack, the team remained defiant, asserting that chains, smart contracts, and infrastructure remain secure.
However, they promised to use on-chain forensics as well as law enforcement to recover the lost funds.
The team launches a buyback program
Following widespread community backlash, the team launched a token buyback program to support impacted customers.
Through the program, the team will repurchase the same number of tokens directly on the open market.
At the same time, forensic teams that help recover lost funds will walk away with 10% of the lost funds.
According to the team, this initiative reflects the company’s commitment to protecting holders, stabilizing liquidity and strengthening investor confidence.
The team added that,
“We are here for the community, transparent, accountable and stronger than ever. »
How did the event affect RVV?
It is important to note that after these events, investors panicked and started exiting the market, which caused prices to fall.
Because of this, liquidated positions in the futures market have skyrocketed. In fact, over the past 24 hours, total liquidations reached $4.28 million.
Source: CoinGlass
Of these, $2.28 million of long positions were liquidated, while $2 million of short positions were liquidated.
Strangely, despite falling prices and rising liquidations, investors on Binance and OKX are taking long positions.
According to CoinGlass, the Long Short ratio remained above 2.0, with 2.8 on Binance and 2.6 for major trader accounts.
Typically, when most traders take long positions, it signals an uptrend because they anticipate a price rebound.
Source: CoinGlass
Can RVV recover?
Current market conditions pose a risk of further losses on the RVV price charts. If the current trend persists, RVV will rise above $0.01 and drop to $0.0093.
However, if the security threat is effectively addressed and the buyback program stimulates demand, RVV could recover and target $0.012.
