A newly released project, PopcornSwap, has performed a liquidity siphon scam. This was nearly an instant rug-pull upon launch, stealing custody of over 2,000,000 USD in users’ tokens
For those who keep up on the Binance Smart Chain, it has been a bit of a day; among other events, there has been another large rug pull on the Binance Smart Chain network. A newly released project, PopcornSwap, has performed a liquidity siphon. This was nearly an instant rug-pull upon launch, stealing custody of over 2,000,000 USD in users’ tokens merely three hours after their first Twitter post. The project has now deleted all media and website pages, going ghost.
This must serve as a fair warning of the high-risk nature of De-Fi projects. While smart-contracts give developers the tool to create robust protocols innovating traditional financial services, there are unfortunately inherent risks. These can be defined as smart contract risks; while this code allows users to develop trustless and decentralized protocols, they are not perfect. Malicious developers can leave loopholes in the code to siphon users’ money. This is the case of PopcornSwap, where developers siphoned over 2,000,000 USD. Below is the wallet address which has custody of the stolen funds.
Smart Contract Risks
In other instances, developers may not recognize a critical error in their code. This is unavoidable as nothing is ever perfect, which was the case in the Harvest Finance hack. Unnoticed structural integrity in a smart contract can be easily exploited by malicious users who find vulnerabilities in the code and ultimately steal users funds.
Overall, smart contract risk is a prevalent issue in the De-Fi space on both the Ethereum Network and the Binance Smart Chain. At the same time, these are not insanely common occurrences, but they ever too frequent. We have published a few guides on the BSCNews website, authored by The Ape, which help users safeguard against these instances:
How To Spot a Potential RUG — Clear signs something is sketchy
How to Keep Your Funds SAFE — MetaMask Guide
Unfortunately, in the current De-Fi landscape, smart contract risks are very prevalent and should always be considered. As the space continues to mature, we can expect to see better audits, more educational awareness, and a general increase in safety. These tools are quickly developing with a large amount of insurance and audit protocols launching to help safeguard and protect users from these occurrences.
Source : bsc.news
Founded in 2020, BSCNews is the leading media platform covering decentralized finance (DeFi) on the Binance Smart Chain (BSC). We cover a wide range of blockchain news revolving mainly around the DeFi sector of the crypto markets. BSCNews aims to inform, educate and share information with the global investment community through our website, social media, newsletters, podcasts, research, and live ask me anything (AMA). Our content reaches hundreds of thousands of global investors who are active in the BSC DeFi space.