• This article compares the market reactions of Euler’s EUL token and First Republic Bank’s stock following respective protocol hacks and U.S. bank turmoil, respectively.
• Euler Finance experienced a flash loan exploit that caused its token to fall by 50%, while First Republic shares fell 62% due to the collapse of two crypto-friendly banks.
• Despite the major losses suffered by Euler, FRC was punished more severely by traders, demonstrating how investor sentiment can be more influential than actual market events.
This DeFi Protocol Just Got Hacked but Its Token Is Still Doing Better Than a Major U.S. Bank’sEuler’s EUL token fell 50% hours after an exploit on its protocol while First Republic shares fell roughly 62% following U.S. bank turmoil.
Euler Finance Hack
An attacker used a flash loan to plunder nearly $200 million from Euler Finance, a permissionless protocol that facilitates crypto lending and borrowing. Holders of euler (EUL) had their tokens cut in half as a result of this attack, demonstrating that no matter how bad things get somebody always has it worse.
U.S Bank Collapse
First Republic Bank (FRC), which has been around for nearly 40 years, saw its stock plunge 62%. This came after Wall Street digested the collapses of Silicon Valley Bank (SVB) and Signature Bank which both did business with crypto companies, leading to many investors fleeing for safer havens such as Bitcoin and Ethereum instead.
Investor Sentiment Influential
Despite the fact that First Republic has not defaulted or gone insolvent or been seized by the government – in fact it raised $70 billion over the weekend to shore up its liquidity – traders punished FRC shares more severely than EUL which had just lost hundreds of millions in value with little chance of getting it back.. This demonstrates how investor sentiment can be more influential than actual market events when it comes to asset prices moving up or down.
Crypto Market Reaction
Elsewhere in the stock market, assets mostly traded sideways by the session’s close; however in cryptocurrency almost every asset rallied following news that all depositors would be made whole again further highlighting investors’ confidence in digital assets during times of uncertainty or crisis situations .