Initia ($INIT ) has triggered highly volatile price action, sparking a rapid 14% to 16% counter-intuitive relief pump to trade around $0.15–$0.16. The vertical bounce comes amid an extraordinary market dynamic—the token's value expanded despite the entire underlying network being shut down.
Key Drivers Behind the INIT Pump
"Native Token Unaffected" Clarification: The primary catalyst reversing an initial market dump was an official statement from Initia's co-founder. While hackers successfully exploited a zero-day vulnerability in the MoveVM implementation to siphon $2.7 million, developers verified that the native $INIT token supply was untouched. This triggered severe short-covering and speculative buying.
Thin-Liquidity Post-Halt Bounce: Following the security breach, Initia immediately paused its Layer-1 network and rollups, halting block production. Major South Korean exchanges, including Upbit and Bithumb, froze deposits and withdrawals. This lock on liquidity meant traders could not deposit fresh tokens to sell into the market, paving the way for a rapid buy-side bounce.
"Sell-the-Rumor, Buy-the-Fact" Rotation: The recovery is a textbook "the bad news is out" sentiment play. Because the financial impact was isolated to bridged assets (like AUSD, USDC, and ETH) rather than systemic structural token printing, opportunistic whales accumulated the asset at its local $0.113 bottom.
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