Decoding why a halted DEX on Elrond Network sent ELGD rolling down a slope

Yesterday, following the detection of a “set of suspicious activities”, Maiar Exchange (Maiar Dex) a decentralized alternate deployed on the Elrond Network, was positioned underneath upkeep.

Beniamin Mincu, Founder and CEO of Elrond in a tweet put out earlier at present confirmed that his workforce already launched an investigation into the suspicious exercise detected on Maiar Exchange and would supply an replace quickly.

Speculating on the character of the suspicious exercise detected, users of the platform imagine that it is likely to be an “exploit of the Maiar Dex or SC async calls” by means of the detection of a technique to “hide some transactions/call funds out of nowhere” on the community.

At press time, Maiar was offline as its web site couldn’t be assessed. Immediately following the downtime, each the Elrond Token (ELGD) and Maiar’s Native Token (MEX) suffered a severe decline in value.

Let’s check out efficiency within the final 24 hours.

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Price Reactions

Immediately the Mincu confirmed the announcement and knowledgeable customers that the Maiar alternate had been positioned underneath upkeep, and the ELGD lodged a 7% decline in value. It marked a low of $71 minutes after Mincu’s tweet went up. In the final 24 hours, the token was noticed registering a 5.10% decline. At press time, the token exchanged palms at $73.21.

Toeing the same path, the MEX token was severely hit with a 90% loss in value minutes after the alternate went offline and the identical was confirmed by Mincu. The token went from an index value of $0.0000881 to 0.0000094 inside minutes after Mincu’s tweet went up.

Although a retracement adopted pushing the worth upwards, the token nonetheless managed to file a 4.47% decline within the final 24 hours. At press token, this token bought for $0.00008556 per MEX token.

MEX 1D graph coinmarketcap

Source: Coinmarketcap

Although recording a 221.33% bounce in buying and selling quantity within the final 24 hours, the decline in value and the place of the Relative Strength Index (RSI) for the ELGD token hinted at an elevated promoting strain on the time of writing. The RSI stood at 36.53 beneath the 50 impartial area. 

EGLDUSDT 2022 06 06 10 06 40

Source: TradingView

With the worth marked by a protracted candle stick, the RSI for MEX was noticed resting deeply in an oversold place of 13 at press time. In the final 24 hours, the buying and selling quantity declined by 35.36%.

MEXUSDC 2022 06 06 10 03 44

Source: TradingView

On-Chain Analysis

On-chain information revealed that despite the worth decline noticed within the final 24 hours, and the downtime on one of many platforms hosted on the Elrond Network, the event exercise of the ELGD maintained its excessive place. It was stationed at 72 on the time of writing.

Elrond EGLD 10.17.58 06 Jun 2022

Source: Santiment

Similarly, on a social entrance, the Social Volume of the ELGD token noticed an uptick within the final 24 hours. It was noticed at 19 at press time. Social Dominance alternatively suffered a 16% decline.

Elrond EGLD 10.17.42 06 Jun 2022

Source: Santiment

With the alternate nonetheless down over 12 hours after it was taken offline, the investor’s confidence is likely to be arduous to revive when it comes again on-line.

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