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Kava’s native token $KAVA crashed more than 40% intraday on Nov. 14 as the blockchain project flagged an unexpected on-chain activity involving an application in its decentralized finance ecosystem.
The incident led Upbit, Bithumb and Coinone to suspend $KAVA deposits and withdrawals while assessing the situation, according to a notice.
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Kava said the incident was isolated to Kava Lend, its lending and borrowing protocol, and that it was not the result of an infinite mint. The project also addressed reports of $KAVA tokens being bridged to and sold on BNB Smart Chain, which contributed to the token’s sharp decline.
Upbit suspended $KAVA deposits and withdrawals, issued a caution notice and placed the token on its delisting watchlist. Bithumb and Coinone also halted transfers as a precaution.
Kava also paused its Axelar bridge as a precaution, halting cross-chain asset withdrawals through the service. The team said it would publish a complete incident report once it was ready.
The network’s $KAVA token is used to secure the chain through staking, pay transaction fees and participate in governance.
According to CoinGecko, the price of $KAVA has dropped from about $0.068 to $0.041, a decline of 41% in the last 24 hours.
