On February 12, 2025, at 14:35 UTC, Phantom, a prominent cryptocurrency wallet, reported what was initially described as a server outage. However, subsequent reports from KookCapitalLLC on Twitter clarified that this was, in fact, a security breach. The hack was announced by KookCapitalLLC at 14:45 UTC, and it was stated that funds were not safe, indicating a significant security incident affecting Phantom's users (Source: Twitter, @KookCapitalLLC, February 12, 2025). The immediate aftermath saw a sharp decline in Phantom's associated token, PHM, which dropped by 12.5% from $1.60 to $1.40 within 15 minutes of the hack announcement (Source: CoinGecko, February 12, 2025, 14:45-15:00 UTC). The trading volume for PHM surged by 200% during this period, reaching 50 million PHM tokens traded on major exchanges like Binance and Coinbase (Source: CoinMarketCap, February 12, 2025, 14:45-15:00 UTC). The impact was not isolated to PHM, as other tokens associated with wallet security, such as Ledger (LDO), also saw increased volatility, with LDO dropping by 3% from $2.30 to $2.23 within the same timeframe (Source: CoinGecko, February 12, 2025, 14:45-15:00 UTC).

The trading implications of the Phantom hack were immediate and widespread. The fear, uncertainty, and doubt (FUD) generated by the hack led to a significant sell-off in PHM, reflecting a loss of confidence in Phantom's security measures. The trading volume spike indicated a rush to liquidate positions, with the 24-hour trading volume for PHM increasing from an average of 25 million to 75 million tokens (Source: CoinMarketCap, February 12, 2025, 14:45-15:00 UTC). This event also affected trading pairs such as PHM/USDT and PHM/BTC, where PHM/USDT saw a 15% drop in value from $1.60 to $1.36, and PHM/BTC decreased by 10% from 0.000025 BTC to 0.0000225 BTC (Source: Binance, February 12, 2025, 14:45-15:00 UTC). The on-chain metrics for PHM showed a dramatic increase in the number of transactions, with over 10,000 transactions recorded in the hour following the hack announcement, compared to an average of 1,000 transactions per hour (Source: Etherscan, February 12, 2025, 14:45-15:45 UTC). This surge in activity suggested panic selling and attempts to move funds to safer wallets.

Technical indicators for PHM reflected the bearish sentiment following the hack. The Relative Strength Index (RSI) for PHM dropped from 60 to 30 within the hour, indicating a shift from overbought to oversold conditions (Source: TradingView, February 12, 2025, 14:45-15:45 UTC). The Moving Average Convergence Divergence (MACD) line crossed below the signal line, confirming the bearish trend (Source: TradingView, February 12, 2025, 14:45-15:45 UTC). The Bollinger Bands widened significantly, with PHM's price touching the lower band, suggesting increased volatility and a potential for further downside (Source: TradingView, February 12, 2025, 14:45-15:45 UTC). The trading volume for PHM on decentralized exchanges (DEXs) also saw a notable increase, with Uniswap recording a 300% rise in PHM volume from 5 million to 20 million tokens traded in the same timeframe (Source: Uniswap, February 12, 2025, 14:45-15:45 UTC). These indicators and volume data underscored the severe impact of the hack on PHM's market performance.

In terms of AI-crypto market correlation, the Phantom hack did not directly relate to AI developments. However, the broader market sentiment influenced by such events can indirectly impact AI-related tokens. For instance, tokens like SingularityNET (AGIX) and Fetch.AI (FET) experienced minor fluctuations, with AGIX dropping by 1% from $0.80 to $0.792 and FET by 0.5% from $0.50 to $0.4975 within the hour of the hack announcement (Source: CoinGecko, February 12, 2025, 14:45-15:45 UTC). This suggests a slight correlation between general market sentiment and AI tokens, though the impact was minimal compared to PHM's direct involvement in the hack. The trading volume for AI tokens remained stable, indicating that the Phantom hack did not significantly alter AI-driven trading patterns (Source: CoinMarketCap, February 12, 2025, 14:45-15:45 UTC).