It’s semantically ironic if nothing else – Ed Browne at Newsweek reports today that the Safedollar cryptocurrency stablecoin is now worth zero dollars, after a hack involving $250,000 worth of Safedollar pillaged by cyberattackers.
“Safedollar said it was in the process of putting together a compensation plan for those who lost tokens,” Browne writes.
Safedollar, which is maintained on Polygon’s MATIC blockchain, was designed to be pegged to the U.S. dollar for price stability. Now, Safedollar operators report they have paused all activities related to the coin’s trading.
“All seed pools are safu.” reads a notification from Safedollar administrators using cryptocurrency slang to indicate that recovery efforts are underway.
Traders aren’t so impressed.
Responses to the news at Reddit show rank-and-file investors panning Safedollar and its operations, specifically because this catastrophe follows another one where a digital asset called Titan was also brought down by hackers.
“SafeDollar was given out to TITAN holders who were affected in the Titan hack which happened a week or so ago,” writes redditor uDetroitMotorShow. “As many would know. Titan went to zero due to an inflation bug where someone was able to print billions of TITAN and dump it on the market, crashing the price to zero over a few hours.”
“This is why you guys should buy my new coin which uses reverse psychology to fool hackers, DangerToken,” writes TheMuffinistMan on the same thread.
“I wish I got some Titan,” writes myspacereddit. “Should I could (sic) get safedollar airdropped to me.”
“Funds are not Safu?” writes ThatOtherGuy254.
“I feel like every crypto with safe in its name is either a scam or going to fail,” writes sam0016. “Safe in the name has become an instant don’t even bother looking into it for me (sic).”
It’s evident that the combination of the Titan debacles and the subsequent hack of Safedollar will not inspire a lot of confidence in the stablecoin project in some quarters. Look for the fallout if it affects your crypto-facing portfolio.