«Пять лет ожидания обернулись потерей: в Cardano-кошельке произошло фатальное слияние с неликвидностью» Translation: Five Years of Waiting Ends in Loss: A Fatal Merge with Illiquidity Hits Cardano Wallet

A dormant Cardano wallet, inactive for five years, was unexpectedly activated and exchanged 14.4 million ADA for the stablecoin Anzens (USDA) through an illiquid pool. The incident attracted the attention of on-chain investigator ZachXBT.

The user executed the transaction in two stages: initially, a test transfer of 4,437 ADA, followed by the main exchange of 14.4 million ADA worth $6.9 million just 33 seconds later. Due to the low liquidity in the stablecoin pool, the asset price surged sharply from $1.03 to $4.8.

At the time of writing, the USDA price is $1.03.

As a result, the Cardano holder suffered a loss of $6.05 million. ZachXBT dubbed them the «on-chain clown of the month.» Prior to the incident, the wallet had remained dormant since September 13, 2020.

It’s noteworthy that the funds came from the genesis block of the network, created on September 23, 2017, as uncovered by a user named bobcorn.

The community expressed little sympathy for the affected user and criticized Cardano for its lack of developed infrastructure and support for stablecoins.

«Such incidents should not happen again — they can paralyze the entire DeFi market within the Cardano ecosystem!» wrote a developer known as dori.

Another community member, pseudonymously known as Cardano YODA, also emphasized the importance of stablecoins in the decentralized finance sector. They urged the blockchain platform’s leadership not to delay decision-making.

«A bull market has been ongoing for a year, and we can’t even direct a few tens of millions into DeFi. We urgently need to restore governance functionality: appoint a new council member and approve a proposal on the blockchain. […] We are creating cutting-edge technology, but without users, liquidity, and volume, we have no chance to stand out among competitors,» stated the user.

The team behind the USDA, Anzens, shared a similar sentiment, issuing a statement regarding the incident.

«This case highlights the demand for stablecoins within the Cardano ecosystem. We urge the community to participate in building liquidity for fiat-backed native coins on Cardano,» the developers noted.

As of writing, 11 stablecoins operate within the Cardano ecosystem, six of which are issued on the network itself. The total market capitalization of these stablecoins is $39 million.

In comparison, Ethereum’s total exceeds $165 billion, while Solana’s is at $13 billion.

It’s worth mentioning that in August, ZachXBT labeled the operational model of Cardano as a «scheme for enriching insiders.»