FLOW (Flow) down 10.80% in the past 24 hours, with a market capitalization of approximately $171 million

Gate News Bot Message, December 29 — According to CoinMarketCap data, at press time, FLOW (Flow) is trading at $0.10, down 10.80% in the past 24 hours, with a high of $0.18 and a low of $0.10. The current market cap is approximately $171 million, a decrease of $20.67 million from yesterday.

Important recent news about FLOW:

1️⃣ Security vulnerability leads to large asset outflow
Flow’s execution layer was targeted by a security breach. Attackers exploited the vulnerability to transfer about $3.9 million worth of assets off-chain before the network shutdown on December 27. The funds were mainly transferred via cross-chain bridges such as Celer, Debridge, Relay, and Stargate. The attacker’s address has been identified and flagged. The Flow Foundation has submitted freeze requests to Circle, Tether, and major exchanges, with related money laundering routes being tracked in real-time. Although the official statement emphasizes that user balances were not affected and all deposits remain intact, the exposure of this security flaw has severely undermined market confidence in Flow’s network security.

2️⃣ Policy shift from network rollback to isolation recovery plan
Initially, the Flow Foundation announced a network rollback plan to remove unauthorized transactions but later abandoned it in favor of a new “isolation recovery” approach. The new plan does not require rollback or reorganization, preserving all legitimate user activities. Over 99.9% of accounts are unaffected, and partner replays of transactions are unnecessary. This policy change reflects difficulties in coordinating with ecosystem partners, especially bridging operators. Debridge co-founder has pointed out that rushing to rollback the chain could cause economic losses far exceeding the original attack impact and may introduce systemic risks. This turbulent decision-making process has heightened market doubts about the reliability of Flow’s recovery plan.

3️⃣ Network shutdown and phased recovery plan
The Flow network has implemented a coordinated pause and is currently in idle/read-only mode, with normal transaction submissions suspended. The protocol fix proposed by the official team has been unanimously approved by network validators and successfully deployed. However, full operation cannot resume until critical ecosystem partners—including cross-chain bridges, centralized exchanges, and decentralized exchanges—complete mandatory ledger synchronization. The entire recovery is divided into multiple phases: the first phase involves launching the Cadence environment while the EVM remains temporarily limited; subsequent repairs are expected to take approximately 24-48 hours; finally, cross-chain bridges and exchanges will be restored. This prolonged shutdown and phased recovery create ongoing market pressure and uncertainty.

This message is not investment advice. Investors should be aware of market volatility risks.