AVICI Token Crushed by Hack: 49% Drop in 24 Hours Sparks Market Turmoil

A crypto‑card hack slammed the AVICI token down 49% from its 24‑hour high, driving it to a record low.

Mechanics of the Exploit

Attackers manipulated a $1.1 million crypto card to reroute UTXO flows within AVICI’s smart contract. The breach leveraged a vulnerability in the neobank’s integrated payment gateway, instantly pulling 10 M tokens from the pool.

Market Shockwave

■49% plunge took the token from $0.12 to $0.06.

■The AVICI liquidity pool shrank 35%, doubling the bid‑ask spread.

■Market depth lost 60% of the open $2.3 million position.

Institutional and Investor Reaction

■Neobank CEO Lina Ortega issued a statement: “We are revisiting our security protocols.”

■ETF managers trimmed exposure to non‑direct AVICI‑linked funds by 12%.

■Major crypto fund Digital Capital liquidated $5 million of AVICI holdings post‑hack.

Long‑Term Implications

■Heightened regulatory pressure on security could slow neobank crypto integrations.

■The hack underscores the need for improved on‑chain traceability of similar tokens.

■Market models project a 30% technical recovery scenario for AVICI, contingent on restored liquidity.

Cem Talu – Head Strategist, Digital Assets: “This incident highlights the fragility of crypto‑finance bridges. Neobanks must adopt multi‑layered risk‑management frameworks to safeguard token liquidity. AVICI’s price rebound will depend on liquidity providers and institutional investors regaining confidence, a process that could take several months.”