LUCKNOW (CoinChapter.com) — Cybersecurity firm PeckShield revealed that remittance platform Telcoin lost $1.3 million worth of cryptocurrency in a security breach. However, PeckShield did not provide details on the Telcoin crypto theft. Nonetheless, the news sent Telcoin’s native TEL token plunging over 40% in value.
According to data tracked by PolygonScan, the theft of assets is associated with an Ethereum address identified as 0x35d2775e5f95596509951b140d68fc5b9185ff98. On Dec. 25, Telcoin abruptly suspended activities on its mobile application after users reported issues, tweeting that they were investigating problems with the app and had temporarily frozen usage.
TEL Sees 42% Drop After Christmas Day Selloff
Users have immediately lost faith, pulling assets en masse. According to data from CoinMarketCap, TEL dropped a staggering 41% over the previous 24 hours in the aftermath of the incident. The massive selloff occurred in the late hours of Christmas day, typically a slow time for trading. TEL slightly recovered but continued its descent to a 42% drop from pre-exploit levels.
At the time of this writing, TEL is trading around $0.001192, down precipitously from its 30-day high above $0.002. Meanwhile, trading volume spiked an astounding 2775% to over $28 million – evidence of investors rapidly fleeing the troubled asset.
Crypto Theft Derails Progress
Telcoin is a Singapore-based DeFi platform that leverages blockchain technology to provide mobile phone users access to fast, affordable financial services.
Telcoin aims to align telecommunication companies around its user-owned platform to distribute superior financial products to their over 5 billion mobile subscribers. This allows telecoms to leverage their vast customer bases to provide decentralized financial services superior to traditional banking.
Telcoin recently launched the third version of its platform, introducing new user-owned products for remittances and a decentralized exchange. However, this progress was derailed by the recent $1.3 million exploit, which the company must address transparently to maintain user confidence in the future.
The exploit and subsequent TEL selloff are blows to Telcoin and its users. Telcoin bills itself as an easy way for users to transfer and convert telecom assets into cryptocurrency. It partners directly with telecom providers and has seen steady growth since its 2017 founding.
Until Telcoin can provide a transparent accounting of what occurred and how it will prevent further breaches, confidence will likely remain shaken. Telcoin still owes the community a detailed explanation of the $1.3 million crypto theft. Their response may determine whether TEL recovers – or drops even lower from here.
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