Analysis

Solana Aims At $90 Despite Drama With The 700 $SOL Hack On Solana Mobile DAO

Jim Haastrup

Key Insights

  • $60,000 worth of $SOL has just been stolen or embezzled from Saga DAO, a prominent Solana promoter.
  • The founder who lost the funds claimed he was hacked, but another founder alleges theft.
  • The DAO's funds weren't secured with multi-sig, leaving them vulnerable.
  • Solana price struggles: Despite the drama, Solana's price shows signs of potential recovery.
  • The cryptocurrency dipped below $100 but found support around $78 and could bounce back above its 20-day EMA.

Saga DAO, one of the most prominent DAOs dedicated to promoting Solana has just been hit by a possible hack that claimed $60,000 worth of SOL.

However, things aren't this simple.

There might be reason to believe that this hack wasn't a hack at all and that someone might have just outright robbed Saga DAO.

 There is an ongoing debate that gets more heated as the seconds tick by, and some of the DAO members seem to believe that one of the founders was responsible for the theft of 700 $SOL.

Here are all the details:

What Happened With Saga DAO?

A dozen enthusiastic Solana users founded Saga DAO, with the goal of promoting blockchain and Solana awareness via mobile applications.

Through donations and membership fees, the DAO was able to accumulate a treasury of about 1000 SOL.

The DAO's funds were supposed to be stored in a multi-sig wallet, requiring several people to approve before funds could be withdrawn. However, the wallet's multi-sig feature was never activated, and this is where things went awry.

On 19 January, one of the DAO founders who goes by "zkRedDevil" reported that his home computer had just been hacked and that 500 SOL ($35,000) of his assets plus 700 SOL of the DAO's holdings had been taken from his wallet.

He said that the hackers got through his wallet's multi-signature security feature by using a remote access tool to access his device.

The funds are supposedly gone, and zkRedDevil has both transferred the remaining 300 SOL of the DAO's treasury to another wallet and handed over the control of the DAO's Discord server to another founder.

zkRedDevil claims that he is innocent—but not everyone is having it.

Not Everyone Is Convinced

DAO members have expressed their doubts about the circumstances around the "hack", most notable of which is Ashen, another founder.

Ashen has said that zkRedDevil is lying, and simply orchestrated the supposed theft himself.

A hack, a theft or both

In addition, Ashen notes that zkRedDevil removed his earlier Discord announcement in which he expressed regret and acknowledged making a mistake.

According to Ashen, this was an admission of guilt and he doesn't think there was a hack.

Meanwhile, Solana Struggles With $90

Solana has been trading on top of its 20-day EMA since mid-September last year. However, on 18 January this month, the bears successfully pulled the cryptocurrency's price well under this moving average, with Solana going fully under $100.

Solana's price action | Source: TradingView

However, this decline has not stopped Solana from trying to recover.

The cryptocurrency's position under its 20-day EMA shows a bit of bearish dominance. However, the RSI on the daily chart has also approached the neutral zone, indicating that the bulls may be gaining strength.

Moreover, Solana also appears to have found support around $78 as shown above, and is now showing signs of a possible bounce and break above its 20-day EMA.

Solana could possibly break above its 20-day EMA

This break above the 20-day EMA would push Solana straight up above $90, making it poised to retake $100 and possibly continue its rally further up above $125.

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