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Another crypto project (DeFi) is hacked again and now I'm starting to believe that devs are the ones pulling the rug themselves because this is becoming a child's play right now

https://i.imgur.com/H85bjgQ.jpg


Are we been lied to about DeFi projects getting hacked almost every months nowadays? What do you have to say

And Binance smart chain becomes safe heaven for the hackers?

Surely people are expecting what will be the reply from CZ for this scam project because it seems devs run away within 24 hour after they launched the project on BSC network.Where ever there is hype then there is high risk of getting scammed.

Please beware!

Defi has attracted a lot of investors and traders that is why they are followed by both developers and scammers. They also want take a piece of that pie. I don't know the details of the Meerkat Finance "hack" yet so I can only speculate. Was their code audited by a reputable third party? Is their team anonymous? Answers to those questions can help us form informed decision.

At this point, I do believe it is the team themselves who did it. More like an intentional scam instead of a hack in my opinion.
A simple logic behind that claim is, a few days after it launched. The vault was drained and at the same time, all of their gateway(Website and Their Twitter were taken down at the same thing this hack happened).
Auditor? nope, I do not hear anything about it at all. Since DeFi started to heat up, we see a lot of projects did this. Why would they do it if they are aiming for a rug pull?
Anonymous team, the ghost who knows who is the auditor, and huge ROI. A perfect combination of DeFi`ed.

Nothing surprise.

Because everyone doesn't give any shit about DeFi, yeah they keep investing no matter the project was safe or real team information behind the project. I already share my opinion about DeFi, most of them only share the same service which is give you a stake reward APY and some of the DeFi have stupid APY with a thousand %.

Now comparing with Lending 2017 did they different? IMO, they are all the same just different methods + words explanation ~XD.

LOL ,it will be a common thing on this year , since i also get rug pull by some yield farm from BSC . but well, no rules , no law just DYOR . basically once u spend your money there u must know that probably not your money anymore, how about slow game gamble ? , it is. i mean if u want your money more safely , just go to pancake , if u want your money got doubled within hour, so then , prepare for rug pull.

Hacking a DEFI project is unpredictable or certain because we cannot be sure that any DEFI protocol is secure enough. Even BRZX invested by Jeff Bezos, certified by the source audit company, was attacked more than twice with the amount of up to several million USD. I think a DEFI project can be hacked regularly because we have chosen to self-manage assets with risk and that is certainly risky.

Everyone is pulling their rugs here. This is not the first time we have seen it though, 2017 was the real big start for projects to suddenly pulling out exit scam and then hackers laying their eyes on crypto because of the huge amount of money involved here.

Probably it's becoming a joke, so it's either investors move away and choose not to be the victim, or people are going to take the risk. It's there choice.

believe that every time there is a bull market we will see a situation like this. When many projects become popular in the market then there will grow a fungus that is detrimental to the crypto market. investors will hesitate to enter into new investment projects such as DeFi. all will return to market adjustments when the investment will dominate the top market project. New altcoins with little community will be difficult to get support and trust.

Not here to defend but to share knowledge, is DeFi not bigger than BSC? To me it is and for the fact that only DeFi projects are getting hacked looks suspicious to me, not all those hacks are real hack, this is the first thing that always come to mind, I'm waiting for BSC hacks though but honestly decentralized sucks in crypto space

When many new Defi projects are introduced day by day then it's widespread that some of them being hacked or rug pulls by the dev. It's not possible for everyone to check the security measure that has been taken to prevent any hacking activity. So be cautious about any new Defi project or do more research about the protocol they are using for security.

One of the major problems with the DeFi I knew in the past was the kind of risk the platform allows.    I wish projects are used and tested properly for awhile before they are allowed in the public for serious use.

Teams could have their real identity verified in privacy-friendly manner and still remain anonymous as long as their profiles show stuff like "blue checkmarks" on name section to prove that their real identities have been verified but not visible to the public. If the team commit serious crime like attacking the community, community could request that their identity be revealed.

Decentralized Ideals/principles have to go hand in hand for security and other reasons.

The dev is the only party what function that already dropped into the smartcontract.
I do believe almost all of the defi hacks caused by the insider or the owner itself who has been rugpull the funds from the pool
It doesn't make sense the code can be hacked easily . I have to say we must not be fooled again by the scammers who claimed their scam defi got hacked. That's just a trick

Decentralization doesn't sucks but when people are in control of their project and call their premined project as decentralized makes the people confused and it is easier for them to run away with the money but since BSC itself a centralized network then Binance may investigate further about the hack or its just another scam?

maybe more precisely as a safe escape, yes BSC no doubt, we are attracted day by day. they always develop security on a regular basis, and that's what they should be doing. the reason DeFi is easy to hack is because it's easy to find and an open system, no routine maintenance. routine maintenance was only carried out by the large capitalized DeFi project.

This incident reminded me of 2017 and 2018. At that time there were many ICO projects with almost the same cases.
the team announced their massive sales success. but one month later they announced that the funds raised were hacked or the funds collected were not as expected. after that, the developer will just leave the project.
situations like this have been around for a long time, and there are always loopholes for scammers to seek profit. The current interesting investment trend is the DeFi project, and many investors are also attracted by this trend. not only new investors, even old investors who see the potential of the DeFi project that can make quick profits can seduce anyone.

DeFi projects are prime target to hackers since 2020 and nothing is going to change that soon, maybe NFT ? There might be DeFi projects pulling rugs themselves like OP said but majority of these DeFi projects are not just capable, they are build by developers who want to make money off DeFi and they believe they are capable to deliver

I never heard of meerkat finance before. I don't know what happened there but at the moment where every day like 5-10 new defi projects appear it's no wonder that one of those get hacked from time to time or is a rugpull.
Now with Uniswap it's also easier to rug pull. If you as the project creator provide the most liquidity than you can withdraw it anytime you want with all the corresponding ETH or USDT if.

Lol, it's becoming a common thing to be rug pulled by team and than team will act like it's been hacked by hacker . Even people are getting into those projects because of the hype and shilling posts on telegram. At the end, whales dumped the price of that tokens because of high apy or happened any incidents like hacking or rug pull. Every week, more than 3 projects are rug pulled after the starting of the hype of BSC. So, be aware of this and better to participate into those audited or binance backed projects if anyone want to use BSC for long run.

It's likely.

That these hacks aren't really hacking but just exit scam of those developers. We will never know if that's the actual thing.

But as you become aware of it, choose the good projects that you can invest your money in such projects.

This is a setup: a fake hack. Its so Binance can completely recover everything and save the day. This will convince the public that Binance's version of "centralized DeFi" is better than pure DeFi.

This is so obviously a massive PR drama. It is so easily traced. No one who would go to the effort to pull such a con would leave such trail.

We started to hear these kinds of hacks in defi projects every day. People are obviously losing their money for high interest and easy money.I think most teams act like they've actually been attacked,and they disappear with the money.

I have heard today that a binance smart chain based defi was hacked and a record $31 million worth of funds were stolen, seems like it is the biggest hack till now because earlier we use to hear 1 to 6 million hacks but this is huge in terms of value, i hope hacker will be traced and he will return the funds and project will continue.

How is this the fault of binance smart chain? This is not as a result of the blockchain security, it was the team scamming investors, they are the custodian of the coins and emphasis had been place on anonymous teams for Defi to control this deception. Binance might face some conspiracy as a result of the contention with Ethereum, they need to be very careful.

From my little understanding seems like the devs team was the one pulling the rug here.

Maybe it seems the right time to spread a new motto : funds aren't SAFU  :D

There is really nothing shocking about rugpull in defi world, in ICO world people got funding and scammed people too, rugpull is not hack and they are different. Also remember it is quite easy to create a new defi thing as well, people could actually deploy a copycat coin in a matter of minutes, so that is why there is nothing you should be worried about, we are in a situation where it would be simple for anyone to do so there are people who are idiots who do this.

What I want to help people with is that if you see a project that is 1 to 1 same with another project with just design changes, do not go for it because you will be scammed, either someone else will hack into it, or they will scam you themselves. There is really nothing to do with scams being too much in defi world, it is as much as in anything else, probably less than ICO times if you compare it.

I just read the article today https://www.coindesk.com/defi-project-meerkat-raises-eyebrows-with-claimed-31m-hack-a-day-after-launch

Weird and funny. It's just happened a day after launch. Exit scam?

31m dollars . that seems alot of money right there and that shows that there are still investors that love to invest on risky stuffs such as defi's .

 we dont know if we have been lied if we havent get a concrete evidence that the hack happened was an inside job but if the hack happen so often then defi's must have a weak security but why would the coin creators still keep on creating coins under this platform but its also the fault of the investors because they feed those greedy people  .

I am not surprised to know that DeFi projects have been hacked successfully, because the incidents of DeFi hacking have happened a lot.
This is in my opinion one of the ways developers trick their project users. Moreover, the unpopular Meerkat Finance project is very vulnerable
to being exploited by scammers to commit fraud. So my advice is to invest in new projects, we have to do our research properly, so that we can
avoid the DeFi scams. Because not all DeFi is bad, there are some good DeFi that are proven to be profitable.

BSC makes more sense because it's centralized and for the fact that it's from binance exchange there is more to do here, if any project go scam binance will be responsible and they will be able to do some investigation, still Centralised projects looks more responsible and responsive to me

Well it's a trend. It's not just the scammer that would surely follow up, but surely hackers of any sort grey/white/black hat hackers.
Back when Facebook became a trend, although this isn't crypto related but in terms commonality from how you described it, there were many hackers of account in order to profit from it from the information getting leaked.

from all these defi projects that have been introduced to the community, i can bet you can only count in your fingers which are really doing the services that they want to offer. most of them are crap and have the intentions to exit at some point. so it is no surprise that you will hear "hacking" incident from defi platforms, which more or less, just covering its true status of abandoning the project by running away their investors' funds.
so how can defi platforms replace the services of traditional banks, when you cant even trust your hard-earned money into this defi business?

For a good project is a lot of targeted hackers and this often happens with deFi projects, and almost every month deFi experience hacking whether this is true or just a joke that has been designed by certain parties to bring down the deFi project, then in this case we must be careful in following a project because the risk is very large.

like other said good projects are targeted by hackers, its easy to know if the projects are pure scam although it's not that accurate, solid projects are able to continue and build again, while those others who are just using hacking to run the money, suddenly they will leave the group and their website will be nowhere to be found.

Indeed not all defi projects are scams, I personally join and invest to those projects that already have their audit certificate because I knew that they will spend a lot for audits and it will give them an assurance that their website will not easily be hacked and there will no flaws in their code, we should learn to take every opportunity and we should learn to be selective at all times.

The fact is that all decentralized projects are very risky for every investor and therefore each of us must think several times and check all the available information several times before starting to cooperate with one project in terms of investment. There is as much fraud in the decentralized finance industry as there was once in ICO companies, but as proof of the performance of many DEFI companies, we can check the coinmarketcap indicators.

Updated!
DeFi hacks [history]
https://bitcointalk.org/index.php?topic=5267124.0

I'm tired of updating my theme lately :)

Such risks await any investor in unverified projects
https://info.uniswap.org/token/0x8c8687fc965593dfb2f0b4eaefd55e9d8df348df
Volume  24H - 31 412 172 $ 

Adding liquidity
Jan-25-2021 03:28:33 PM +UTC
https://etherscan.io/tx/0xe0179bf14e800b57584688c525a24af2a1052634d44f67b03e344249a471cb4b
From 0x5b8235604885b9fb34e6dde5d8b47fb92c0371a9To Uniswap V2: PAID 23 For 5,947,174.5571 ($2,470,735.83) PAID Network (PAID)
From Uniswap V2: Router 2To Uniswap V2: PAID 23 For 175.8 ($269,478.55) Wrapped Ethe... (WETH)
2 740 214$

Remowe liquidity
Mar-05-2021 07:00:55 PM +UTC
https://etherscan.io/tx/0x44a7f300a98479d37900012337a935128971cebb968ca1e0adcd35bd00690202/
From Uniswap V2: PAID 23To Uniswap V2: Router 2 For 659.606077272945004216 ($1,010,549.49) Wrapped Ethe... (WETH)
From Uniswap V2: Router 2To 0x5b8235604885b9fb34e6dde5d8b47fb92c0371a9 For 2,610,184.487494846903709715 ($1,084,393.31) PAID Network (PAID)
2 094 942$

minus $649 000

I would have to stay firm on my beliefs that this project went to reality, sometimes it's gonna be exhausting to Wait for further updates but I am still hoping to see more positive updates on this. Let's see in the upcoming months what's going to be initiated next, for now let's chill and be patient while DeFi hasn't yet come to success.

IMO, this just another strategy of those scammers, besides all of the funds for their project were being funded tru pre sales or private sales. Then after that they can easily manipulate the market as they have the biggest number of tokens being hold then later on this token shall be converted to fiat then run again.

Reasons on why i do really have the hesitation nowadays to make out investment due to this very reason.This hadnt be a new thing even with that ICO craze
where lots of shit projects been popping out everywhere try to get some recognition or funding but still end up on running off their investors fund or money.
Now that DeFi hacks is a bit common, this doesnt show a weak security but rather i do believe that this will be on inside job instead.
Defi hype is dying and wondering on whats next on the line.

I don't think that someone just keeps relaxing and calm because that was alarming for me, though. If we can remember ICO/IEO before, they're doing this as a way to make an easy exit while carrying the money if their investors and gone, no updates after that. I suspected this as a sort of exit scam Defi projects, they are exactly be doing the same again and again.

This is not a road to success but it leads to common losses and failures.