CyberConnect, the Web3 social infrastructure that has entered the radar of many crypto exchanges, was listed on the world’s leading crypto exchange Binance on August 15. CyberConnect is the world’s largest ERC-4337 compliant (Account Abstraction) smart contract wallet system, radically removing the complexity of blockchains.
As the volatility in the project continued, a misunderstanding of a recent “emergency” proposal resulted in a significant drop in the CYBER token price.
What happened and how were investors affected?
CyberConnect proposed an initiative to boost the liquidity of its native CYBER token. According to the proposal, a CYBER-ETH, CYBER-BSC and CYBER-OP bridge supported by LayerZero’s ProxyOFT technology would be established. This bridge would allow users to transfer CYBER between different chains through CyberConnect’s interchain portal called Stargate.
Suggestion Rejected Due to a Misunderstanding
The proposal contained a major mistake by the Cyber Connect team, which was accepted by the team. Right after the bug was announced, CYBER’s price dumped more than 30%.
The proposal originally planned to allocate 1,088,000 CYBER tokens from the community treasury of CP-1. However, due to a typo, the proposal mistakenly specified a much larger number. This was quickly identified and accepted by the CyberConnect team.
The proposal also suggested using unlocked CYBER tokens to provide liquidity. The CyberConnect Foundation planned to hold a certain number of tokens on the bridge, totaling 7,000,000 CYBER-BSC and 3,888,000 CYBER-ETH.