Step Finance and its affiliated platforms, including SolanaFloor and Remora Markets, have made the decision to cease all operations in the aftermath of a recent exploit that occurred last month. This development coincides with the challenging conditions faced by the cryptocurrency market, with SOL struggling to surpass the $100 mark.
Impact of Exploit on Solana Projects and Price
In a recent announcement, Solana DeFi aggregator Step Finance revealed its intention to wind down its operations following a security breach that affected the platform’s treasury wallets, resulting in a significant loss of approximately $40 million. The company explored various options, including potential financing and acquisition opportunities, but ultimately decided to discontinue all activities with immediate effect. StepFinance also mentioned that it is working on a buyback program for STEP token holders based on a pre-incident snapshot.
For more insights, read: A Forecast on the Recent Solana Market Sell-Off
Following this announcement, the STEP token experienced a decline of over 40% over the past week, currently trading at approximately 0.00060. The token has plummeted by more than 99% from its all-time high of $10, achieved in August 2021.
Additionally, Step Finance is in the process of implementing a redemption procedure for Remora rToken holders, ensuring that these tokens retain a 1:1 backing ratio. Remora Markets, a tokenized stock platform operating on the Solana blockchain, has also confirmed its decision to wind down operations alongside Step Finance. Remora Markets is facilitating a redemption process for token holders to convert their holdings into USDC, with further details to be provided soon.
Media Outlet Closure
Solana media platform Solana Floor, a sister company of Step Finance, has also announced its plans to discontinue operations. While the platform will no longer produce new content, existing website materials, videos, and newsletters will remain accessible as an archive. Solana wallet provider Solflare has indicated that it will temporarily suspend its News section within the wallet due to Solana Floor’s closure.
For related insights, check out: XRP and Solana Witness Inflows as Institutional Investors Shift $1 Billion from Bitcoin and Ethereum
Solflare is considering opening up the platform for community-driven articles directly within the wallet. This initiative aims to feature original, in-depth articles, insightful analyses, and market updates, focusing on Solana projects and trends, educational content on cryptocurrencies, and market analysis.
Regarding the potential acquisition of their projects, Step Finance co-founder George Harrap mentioned that discussions are ongoing with interested parties. While there is interest in acquiring various businesses, the team is under time constraints and will carefully evaluate serious proposals.
As of the latest data available, Solana is trading at around $89, marking an 8% increase in the past 24 hours, according to data from CoinMarketCap.
Featured image courtesy of Pxfuel, chart source: Tradingview.com
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