Tuesday’s Cascade Shows Why AI Is Not Crypto’s Real Problem As DeFi Drains Pile Up
Three DeFi protocols throughout NEAR, Base, and Sui have been drained on Tuesday. One of them, a $3.46 million Sweat Economy incident, later turned out to be a basis rescue.
Bloomberg analyst James Seyffart used the cascade to needle Crypto Twitter’s AI-versus-crypto debate. He advised the larger menace to digital belongings is identical one as all the time.
Tuesday’s Drain Cascade
Blockaid raised the alarm at round 1.36 p.m. UTC. Roughly 13.71 billion Sweat Economy (SWEAT) tokens, about 65% of complete provide, moved via an attacker deal with.
On-chain analysts together with former NEAR core contributor Zacodil traced the exercise to an April 27 contract redeploy. The redeploy added refund_first and refund_second strategies.
A single refund_second name returned 13.63 billion SWEAT, value about $2.63 million, to 53 addresses.
Hours earlier, the Syndicate Commons bridge on Base misplaced 18.5 million SYND tokens value $330,000 to $400,000. The proceeds have been bridged to Ethereum.
On Sui, Aftermath Finance paused its perpetuals protocol after losing roughly $1.14 million USDC.
Seyffart Pushes Back on the AI vs Crypto Frame
Crypto Twitter has spent April arguing that AI will end crypto. AI brokers and AI infrastructure are absorbing the enterprise capital that altcoins as soon as drew.
Attention has rotated to AI projects, leaving alts and not using a narrative driver. And on-chain AI brokers will finally make human-led crypto tasks redundant, the extra aggressive model of the thesis goes.
People are asking — Is AI the top of crypto? quipped James Seyffart, an ETF analyst at Bloomberg.
The implied level is that crypto’s continual downside isn’t exterior competitors. The identical protocol-level vulnerabilities that drained SYND, USDC, and SWEAT in a single afternoon are arguably the bigger threat.
Sweat Economy operates the move-to-earn ecosystem behind Sweatcoin, competing with STEPN. The token worth held regular via the episode.
Sweat Economy’s X account stayed silent all day, and the staff has not but defined what vulnerability prompted the redeploy.
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