- Under the influence of attack, tether.io witnessed 8M reqs/5min compared to its usual 2k reqs/5min.
- The attack is currently mitigated, informed Tether’s CTO.
Tether’s CTO Paolo Ardoino confirmed the leading cryptocurrency, Tether, has come under a DDOS attack. He took to Twitter to share the news stating that Tether received a ransom request from Hackers to avoid mass DDOSes(Distributed Denial of Service Attack). Paolo added that the demand is not unprecedented because they have received it once in the past.
As a result of the attack, the stablecoin Tether website, tether.io witnessed 8M requests/5min. Paolo states that on a normal day, the website receives 2k requests/5min. Updating users on the news, Paolo after about two hours of the attack, revealed that the attack has been mitigated.
The news comes as Tether is striving to earn lost trust in stablecoins owing to the market crash last month. Since the bear market that set in last month, users have been redeeming the stablecoin Tether (USDT) for dollars at a high rate. As cryptocurrencies plummeted, a plethora investors asked to exchange their Tethers for dollars, forcing the firm to pay out about an eighth of its reserves, or approximately $10 billion, over the course of just a week and a half.
Tether reached an all-time high market cap above $83 billion last month but has shed 17% of its supply since. As inflation rates continues skyrocketing, Investors recently pulled out approximately $1.6 billion in 48 hours from Tether’s dollar-pegged USDT stablecoin, reducing its circulating supply to $70.8 billion.
Despite the fact that stablecoins are designed to maintain a constant price of $1 and are backed by large reserves of funds, investors are becoming increasingly wary of investing in them. Tether is now facing heightened pressure from regulators, investors, and economists to prove that it allows traders to conduct safe, secure and predictable transactions.