Cypher Says Token Offering Part of Steps to Make Users Whole

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The Solana-based digital asset exchange announced on Aug. 23 that it is planning the “most fair” token launch in the history of Solana. According to Cypher, part of the funds raised via the initial decentralized offering will be used “to sustain protocol development, pay for audits to relaunch the protocol, and initiate a treasury for the protocol.”

August Hack Prompts IDO

Cypher, the Solana-based decentralized exchange, said on Aug. 23 that it would kickstart what it called the most fair token launch in the history of Solana. In a statement issued by the Cypher team via the social media platform X (formerly Twitter), the launch is part of steps being taken to make whole all users who suffered when the exchange was hacked on Aug. 7.

According to a blog post titled Loss of Funds Resolution, the token sale followed “a pro-rata redemption package of current assets in the Cypher protocol.” Such assets would be redeemed via wallets “that [are] associated to margin accounts on cypher.”

Concerning how the exchange plans to use the funds raised from the token sale or an initial decentralized offering (IDO), Cypher said:

Funds from the token launch will be used to sustain protocol development, pay for audits to relaunch the protocol, and initiate a treasury for the protocol.

The decentralized protocol added debt token will be airdropped to users affected by the hack.

Centralized Exchanges Froze $600K in Stolen Assets

Following the attack in which the hacker exploited the cypher’s primary contract, several digital assets including over 15,400 SOL and nearly 150,000 USDC stablecoins were stolen. However, in the blog post, Cypher revealed that digital assets valued at $600,000 have since been frozen by various centralized exchanges. Recovery of these funds will only be possible with the cooperation of the exchanges and upon the issuing of seizure warrants by law enforcement.

Meanwhile, in an illustration shared by Cypher via the digital exchange platform’s handle on X, the general public is set to be allocated 45.5% of the tokens. The Cypher team and investors are set to get 23% and 10.9% respectively while advisors are expected to get an allocation of just 1.2% of the issued tokens.

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