Flow token crashed 52% in the past 4 hours, with whales continuously dumping FLOW on DEXs. Some Korean exchanges (like Upbit) have issued warnings and temporarily suspended deposits. The Flow Foundation has officially announced that they are investigating a potential security incident on the Flow network. The engineering team is working with partners to mitigate risks. It’s not yet confirmed whether this is a hack or a vulnerability, but the market is in a state of panic. Earlier this month, Flow ecosystem’s main wallet, Blocto, announced it would shut down its wallet, Swap, and bridge services on December 18 due to accumulated losses exceeding $5.5 million, primarily attributed to the collapse of FLOW’s price (down over 99% from its 2021 peak). The Flow token (FLOW) is the native token of the Flow blockchain, created by Dapper Labs (the team behind CryptoKitties and NBA Top Shot). It’s mainly used for NFTs, gaming, and consumer-grade applications. Flow was once a top player in the NFT space (e.g., NBA Top Shot), but after the NFT/gaming hype cooled down, ecosystem activity declined. While DeFi TVL and developer growth showed some improvement (with hopes for EVM compatibility and consumer-grade DeFi by 2025), it hasn’t been enough to drive up the token’s price.