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The $1R0R token has gained over 600% since a smart contract drain temporarily saw it drop by over 80%. The astonishing turnaround for the token has been partly driven by the R0AR team’s quick reaction to the smart contract drain with a token buyback program.

At its lowest following the drain, the Ethereum-based utility token’s market capitalization was under $35 million, but now, less than two weeks later, it has moved well above $200 million. A slew of further positive announcements, including the upcoming launch of the R0AR Platform for staking and liquidity provision, has only added to the bullish sentiment.

The token has now recovered all losses since the drain, but there is little to suggest that the rally is over. The R0AR DeFi ecosystem has since expanded, and new holders have added the token to their wallets. Both the technical and fundamental indicators suggest that this rally could well just be getting started.

$1R0R Smart Contract Drain and Team Response

The $1R0R token saw a sudden dive of over 80% on April 16th. Holders were shocked. The token had been trading steadily for weeks with no sign of any bearish activity. The team responded immediately before the vacuum could fill with rumors, as is often the case in crypto.

They held a live AMA just hours after the price crash and revealed that an external developer had engineered a backdoor in one of the staking smart contracts, allowing them to drain the liquidity pool. An estimated 490 ETH worth of tokens were moved to several wallets and then shifted across crypto mixers within minutes.

Often in this sector, when projects undergo such a bearish event, they are as good as dead. However, the R0AR team has a long-term plan, and luckily, the ETH drained from the contract was a drop in the ocean for a project that raised over $5 million during presale.

The team explained that they would be closely tracking the nefarious developer’s wallets and, at the same time, launching a token buyback scheme, which would see tokens repurchased from the open market to stabilize the price action.

The response came quickly and with capital to back up promises, which made way for quick price recovery.

Post-Drain Recovery Hits 600% and over $200 Million Market Cap

As the chart shows, the $1R0R market capitalization plummeted from around $220 million to under $40 million due to the drain. As millions of dollars worth of tokens were dumped on the open market, an enormous red candle crushed the price action and created panic amongst holders.

The bottom was reached just under $40 million, which was around the time that the team started to release information about the event and their plan for the recovery. Shortly after the AMA on April 17th, the price action started to turn positive as the market absorbed the buyback plan.

The buying pressure quickly pushed the token’s price higher, and within 24 hours, it had increased by 100%. This meant that the capitalization was once again above $80 million and moving towards $100 million.

In the days that followed, a steady stream of buybacks and new wallet holders allowed the price appreciation to continue. One week after the drain, the market capitalization reached $100 million and then $150 million.

As of writing on April 30th, the market capitalization has reached over $220 million, giving those who bought the dip over 600% in gains. At this point, the price of $1R0R has recovered to its pre-drain valuation of $0.02.

The Future of $1R0R: Chart Suggests More Gains On The Cards

So, what now? The buyback program has been a success. The chart has recovered, and anyone who added $1R0R to their wallet post-drain is holding up to 600% in gains. The chart and the narrative around the broader R0AR ecosystem suggest that more positive price action could be on the way.

The technical analysis shows that most indicators have moved into the buy zone. The moving averages are nicely lined up, and the RSI is also positive. In addition, the absence of sellers suggests that most whales are positioning for the long term.

Looking beyond the chart, the R0AR team has been delivering on promises that could well add to the bullish momentum. The upcoming launch of the R0AR Platform will see staking and liquidity provision go live. This will allow $1R0R token holders to earn generous APYs on their tokens, especially if they boost returns by holding Executive R0AR Society (ERS) NFTs.

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