Solana (SOL) suffered a dip following the wormhole hack.  The Wormhole team offered to replace the stolen ETH.

Lark Davis recently expressed: Today an application on the Solana blockchain was hacked. Not the Solana blockchain. Similar issues have affected many other cross chain bridges. In no situation whether Ethereum or BSC was the chain hacked. This is an application-level hack.

The Wormhole bridge permits users to transfer ETH from Ethereum to Solana. To use ETH on Solana, users should lock it in a smart contract and receive a pegged asset known as Wormhole ETH (wETH). This asset will be used across Solana’s DeFi ecosystem.

The hacker executed an unauthorized minting of 120,000 wETH, which was worth $322 million. A bridge function which is used to verify asset transfers was exploited via a bug in the system.

The hacker ultimately transferred 93,750 wETH back to Ethereum and eventually claimed it and moved in to their wallet. Further swapped the remaining 26,250 for 432,662 SOL and the funds are sitting in their wallet on Solana.

Community Sentiments:  After this attack, many feel it is good to avoid Solana (SOL) and they support getting into ADA instead or SOL.  However, those who know technology opine that a cross-chain exploit is still possible even if it is Cardano.

In the past, Vitalik said it himself that cross chain platforms will be susceptible to hacks and won’t provide for a stable block chain. Solana is the perfect example.

This is not some kind of learning curve for Solana.  It is centralized and that is the reason for majority of the issues.  There is a fundamental flaw in design.

The justification that Solana has to say is that this worm hole hack is an “application hack” and they are trying to establish and defend stating it is different from protocol hack.

It is obvious that naysayers are annoying to any community. However, the kind of defense that the Solana guys are trying to take makes it all appear like not done.

They also say stuff like, “Even when it’s down, it still runs over 4k TPS. Solana handles far more transactions than any other blockchain daily. It’s like comparing LA traffic to Bakersfield traffic. LA got more people using highways brother.”

Despite all the justifications it is obvious that Solana did not verify it.  The Solana team are marketing that the wormhole is safe.

This event cannot be minimized.  Not just Solana (SOL) but all EVM chains are risking assets with cross-chain wrapped assets. This is not application level – it is more fundamental than that.

Ultimately Ethereum guys have to say that in reality Solana is not the security thing.  Ethereum is the king.

It’s not just an application hack. It’s a fundamental security and design constraint with cross-chain activity.

It is time to look in to reality as opposed to defending Solana.