Warning: Why Is INIT Up 100% Despite the Exploit?
In a strange twist, the price of Initia (INIT) rose by more than 100% in 24 hours, trading around $0.31, on the same day the team announced a network shutdown due to another exploit.
Initia is a Cosmos-based Layer 1 project whose design allows each application to have its own chain within an interconnected ecosystem. The project is backed by YZi Labs and Delphi Ventures, and launched through Binance Launchpool in April 2025.
So, what caused this surge?
On October 23, the network suffered a $2.7 million exploit due to a MoveVM vulnerability and was halted for 9 days. On November 10, it suffered a second exploit worth $615,000 after the theft of Rollup infrastructure keys, prompting another network shutdown.
The real reason for the rally wasn't positive news, but the suspension of withdrawals and deposits. When the network stops, no one can move their coins between exchanges, arbitrage disappears, and the price becomes distorted. That is exactly what happened: INIT's price on some exchanges was 83% higher than on others.
In addition, the surge triggered the liquidation of $2.56 million worth of short positions, intensifying the rally in what is known as a short squeeze.
Although INIT is still 78% below its peak of $1.44, buying now while the network is down is considered an extremely high-risk move.
Do you see this surge as an opportunity or a trap?
This content is for educational purposes
and is not investment advice.
In a strange twist, the price of Initia (INIT) rose by more than 100% in 24 hours, trading around $0.31, on the same day the team announced a network shutdown due to another exploit.
Initia is a Cosmos-based Layer 1 project whose design allows each application to have its own chain within an interconnected ecosystem. The project is backed by YZi Labs and Delphi Ventures, and launched through Binance Launchpool in April 2025.
So, what caused this surge?
On October 23, the network suffered a $2.7 million exploit due to a MoveVM vulnerability and was halted for 9 days. On November 10, it suffered a second exploit worth $615,000 after the theft of Rollup infrastructure keys, prompting another network shutdown.
The real reason for the rally wasn't positive news, but the suspension of withdrawals and deposits. When the network stops, no one can move their coins between exchanges, arbitrage disappears, and the price becomes distorted. That is exactly what happened: INIT's price on some exchanges was 83% higher than on others.
In addition, the surge triggered the liquidation of $2.56 million worth of short positions, intensifying the rally in what is known as a short squeeze.
Although INIT is still 78% below its peak of $1.44, buying now while the network is down is considered an extremely high-risk move.
Do you see this surge as an opportunity or a trap?
This content is for educational purposes
and is not investment advice.
