Cardano NIGHT Plunges to All Time Low After Massive Token Dump

Cardano privacy token NIGHT crashed more than 43 percent earlier today, hitting a record low of $0.01524. Panic spread quickly across the market as traders suspected a hack on the Midnight network. However, the Midnight Foundation quickly cleared the air, stating that the incident stemmed from a cross chain bridge issue rather than a failure of the Midnight blockchain itself.

On chain researcher Paul flagged unusual activity involving Wanchain's Cardano to BNB Chain bridge contract. Around 290 million NIGHT tokens were dumped on decentralized exchanges, while another 200 million went to a separate wallet. The Midnight Foundation confirmed that the core protocol, validators, and consensus mechanisms operated normally throughout the event, meaning no new tokens were minted and the main network was safe.

Cardano co founder Charles Hoskinson weighed in on the situation, pointing out that cross chain bridges remain one of the most vulnerable points in the crypto industry. He noted that automated tools and artificial intelligence are making it easier for attackers to find protocol flaws. Traders should watch for official updates from the project as the investigation continues and keep a close eye on bridge security developments across the sector.