In a recent turn of events, CyberConnect, a blockchain-based company, faced a significant setback that led to a sharp decline in the value of its native token, CYBER. The company’s emergency proposal, known as CP-1, was rejected due to a major error, causing the token’s value to plummet by over 20% within an hour.
The emergency proposal CP-1 was initially designed to allocate 1,088,000 CYBER tokens from the community treasury. The primary objective was to provide liquidity for various bridging services, including CYBER-ETH, CYBER-BSC, and CYBER-OP pairs.
However, a typing error in the proposal led to a significant discrepancy. The proposal incorrectly stated that a total of 7,000,000 CYBER-BSC and 3,888,000 CYBER-ETH would be used, while only 1,088,000 tokens had been unlocked from the community treasury at that time.
CyberConnect’s official Twitter account acknowledged the error, stating that there was a mistake in the snapshot proposal CP-1. The company was quick to admit the error, but the market reaction was swift and severe. The acknowledgment led to immediate repercussions on the value of the CYBER token.
Following the revelation of the error, the CYBER token experienced a sudden and dramatic drop in value. Within a single hour, the token’s value plummeted by more than 20%. The rapid decline caught investors and traders off guard, forcing them to scramble to adapt to the unexpected development.
According to market data, the CYBER token’s price dropped from a high of $1.20 to a low of $0.96 within an hour of the announcement. Trading volumes also spiked, with a 35% increase in sell orders. The token’s market capitalization fell by approximately $50 million, erasing gains made over the previous week.
The rejection of the proposal also had a broader impact on the cryptocurrency market. Other tokens that were to be involved in the liquidity provision, such as ETH and BSC, also experienced slight declines in their values. However, the most significant impact was undoubtedly on the CYBER token and its holders.