Learn from a brother's mistake

[vv181]

What is outrageous besides the hack is the snippet below:

What went wrong

The attack was possible because of the bad technical implementation of the protocol, specifically the smart contract that reads the ALBT price from an on-chain oracle. The contract was badly written, was not properly tested and was not audited.

This situation happened because the governance of BonqDAO was centralized. One trusted person (the CTO) was in charge of writing the development, testing, auditing and deployment.  

That is some crazy shit. a DAO has CTO? Trusted my ass, trusted by who?

The mistake was compounded by many levels of ignorance on this particular project, which are: I bet your brother doesn't comprehend fully the project, the ALBT team or community is also a moron to held their project funds into some shit up lending protocol, and lastly, this lending protocol where the craziness is addressed on the snippet above.

Where is the due diligence from ALBT when putting the funds into a third-party protocol? noting that the project is controlled by a single person and is not being audited. All of this is lunatic.

[taufik123]

-snip-
Whichever project I put my money in, I make sure it has a good team of developers and a great support from the community.
Their founders play an important role too and so its absolutely required that the background of the founders should be clean. Only then I invest in such a project.

These are the things that must be done before putting money into the new project.
Don't do stupid things by putting money into a new project without paying attention to several factors such as the development team behind the project,
clear objectives for the project, whitepaper, roadmap, etc.

New projects sometimes do not display their development team so as investors we do not know who the people behind the new project are.
Always do research to identify whether a new project is feasible or not, if you feel that the project does not meet the criteria and does not have clear information then it is better to skip it.

[sulendra12]

Alliance Block market cap is very low, projects with very low market cap are called degen by many and they are very risky, remember Gala games? It was hacked and all tokens were reimbursed, if Gala was a very small project I don't think they will do the reimbursement.

Looking at the story and so many red flags alert so they should be aware from it and take the action around this. This is why if it's unknown coin with low cap and gamble your money hoping to get return in next bull run with low cap is just too good to be true especially in current condition. I don't know why your brother ended up investing on that particular project, maybe he knows the best I guess?

[TimeTeller]

Alliance Block market cap is very low, projects with very low market cap are called degen by many and they are very risky, remember Gala games? It was hacked and all tokens were reimbursed, if Gala was a very small project I don't think they will do the reimbursement.

Looking at the story and so many red flags alert so they should be aware from it and take the action around this. This is why if it's unknown coin with low cap and gamble your money hoping to get return in next bull run with low cap is just too good to be true especially in current condition. I don't know why your brother ended up investing on that particular project, maybe he knows the best I guess?

Usually, people invest in a low cap coin hoping that one day they will get their profits like 10x, 100x or more.
However, most of these alts will be abandoned even before hitting the trading market, not only hacking or intentionally deserting the project.
This has been going on for years already when it comes new alts. Hence, a lot are going back to top alts to invest, more of them are sticking with btc.
This scenario has been seen, heard countless times, and yet, people still invest in small projects, unheard alts owed to the fact that they are thinking that it will give them hundred folds of returns.
Unfortunately, very rare that an alt project can sustain its market, let alone, increase its value thru time. Don't easily believe the devs' promises.

[Oceat]

Nah, I don't just invest on a new altcoins that doesn't have any history yet just like how BNB made it to the scene. If you are trying to invest in altcoin especially the new one that you thought would pump in the bull run, then think again because mostly of these new altcoins they didn't last a full month before they disappear. Some will stay for two or three months but after that they'll just dump everything in the market. This is the usual pump and dump coins that's happening every now and then but still there are people that would fall from their tactics.

If you want to risk on investing new altcoins, make sure you do your own research.

[Xal0lex]

Altcoins are always dangerous because they can take a very long time to fall and result in a big loss of money. Your methodology for selecting altcoins is not entirely correct either. Just because a coin is listed on an exchange doesn't mean that it's a great investment. Yes, it won't be outright garbage, but that metric alone isn't enough to know that it's a good investment. You also have to look at capitalization, circulating supply, and tokenomics.

[Jackl87]

A minute of silence for all Alliance Block investors...i have a brother who invested in this altcoin, hoping to hold till the next bull market, unfortunately the unexpected happened, now all the money is gone before he realized what's going on.
What lesson could be learned from this?

I think that it is very important to diversify your portfolio, even if you have a specific project that you are convinced, that this is the best project of them all and that it will give you the best profit. Especially in the crypto world there is always the possibility that you lose your complete funds in one way or the other. The platform that you are using can get hacked, if you have your tokens or coins staked on a platform. The project itself can be hacked or can be a scam or a rugpull so even if you still have the coins, then they are simply worthless.
It is always good to have a good mix in your portfolio. Some big and established projects and maybe also some small caps which obviously are high risk.

[judeafante]

What lesson could be learned from this?

If you are a altcoin investor, do not keep all your eggs in one basket, if you believe in an altcoin, make sure it's not the only one, in fact, the more coins you have in your portfolio the lesser the risk, because not all the coins will go bad or get hacked, if one out of 5 or 10 become successful, 6x to , 10x or more, you've made back your ROI and still have some gains.

Provided that all the altcoins in your portfolio are all well researched, there is no perfect research because there is no guarantee that the altcoins however good they may seem will be profitable in the long haul, its good to diversify but keep following all these altcoins and always ready to trade it to better coins, to avoid massive losses, you don't have to wait for a coin to get to the bottom before trading it.

[bittick]

Nah, I don't just invest on a new altcoins that doesn't have any history yet just like how BNB made it to the scene. If you are trying to invest in altcoin especially the new one that you thought would pump in the bull run, then think again because mostly of these new altcoins they didn't last a full month before they disappear. Some will stay for two or three months but after that they'll just dump everything in the market. This is the usual pump and dump coins that's happening every now and then but still there are people that would fall from their tactics.

If you want to risk on investing new altcoins, make sure you do your own research.

here's some tips from me if someone wanted to invests in altcoins but for some reason couldn't make some research first, it's better if they would just follow the many venture capitals in selecting the project, of course the venture capital would've made their own research in regard of the project even though we all know these venture capital usually are having some deal behind the scenes but at least better than just betting away your money.

[_BlackStar]

Bitcoin has dominated my investment portfolio for years, there aren't many altcoin I have considered since then other than a few of the top altcoin. Investment portfolio tend to be good when there aren't a lot of shitcoin, even if bitcoin is the single most dominant but altcoin are also profitable. So there's nothing wrong with altcoin, but they shouldn't dominate your portfolio in the long term. After all, mistakes like that were hard to predict, but avoidance would be better than cure.

I think that it is very important to diversify your portfolio, even if you have a specific project that you are convinced, that this is the best project of them all and that it will give you the best profit.

Many people do it, but not all of them are successful because there are many things that can influence them in choosing and determining the future of their portfolio. As much as possible avoid the hype on certain altcoin, especially if you want to make it a long-term investment.

[samcoin]

A minute of silence for all Alliance Block investors...i have a brother who invested in this altcoin, hoping to hold till the next bull market, unfortunately the unexpected happened, now all the money is gone before he realized what's going on.

It's a costly lesson that everyone should learn. I believe most crypto investors/traders have passed the same situation as your friend's situation. Unfortunately, exploits are still happening to DeFi projects, and it seems that won't stop soon. Even big projects which reached high marketcap were vulnerable, like Luna, so every investor in a DeFi project is targeted.  

What lesson could be learned from this?

If you are a altcoin investor, do not keep all your eggs in one basket, if you believe in an altcoin, make sure it's not the only one, in fact, the more coins you have in your portfolio the lesser the risk, because not all the coins will go bad or get hacked, if one out of 5 or 10 become successful, 6x to , 10x or more, you've made back your ROI and still have some gains.

I recommend dividing money proportionally between high marketcap and low marketcap coins or tokens when someone would like to invest, because the risk decreases as we go up in the marketcap ranking, especially if a project has been in the market for a long time without suffering any attack or exploit.

Also, I prefer projects from the Binance launch pad because binance don't just list any projects, 85% of all projects that used Binance launchpads are successful.

When Binance supports a project, it doesn't mean this project won't fail later. Luna was supported by Binance from the beginning. Binance was a partner of FTX too.

[shinratensei_]

it always lack of research that causes such investments to be massive failure, usually if you are investing in altcoin you should know how to distinguish good project from the technical aspects if you couldn't do it then you're gonna losing.
like many have mentioned it's just far better if you could always diversify your investments, i'd even considers diversifying your investments when you're investing in altcoin the only safe guarding towards these rugpulls and many more, many underestimated the importance of diversification meanwhile had the victims of the luna was diversifying their investments further, they'd still come out relatively unscathed than losing all their investments to some crashes that just doesn't make sense.

[uneng]

A minute of silence for all Alliance Block investors...i have a brother who invested in this altcoin, hoping to hold till the next bull market, unfortunately the unexpected happened, now all the money is gone before he realized what's going on.

These investments are too risky to be taken seriously. I wouldn't put more than 0,5% of my holdings in a token like this. From the total portfolio, only 5% should be compromised with altcoins, while 95% corresponds to bitcoin. From those 5% it's possible to select the number of altcoins you wish to invest, so if something goes wrong with one or few of them, you won't have a severe loss, rather it will be minimal, so you can recover it entirely with the main investment made in bitcoin, once the market enters a new bull season.

[Sebas.tian]

What lesson could be learned from this?

Never to invest all your capital in altcoins. Investing all your money in altcoins is a big risk which is not advisable, because the price can remain low more than 5 or 6 years which can cause many traders to experience losses in their trading. Investing little money on altcoins and invest big amount of capital on Bitcoin is a good ideas, because whenever the price of Bitcoin is pumping in the market other cryptocurrencies price will be pumping too, which is a sign that investing a huge amount of money on Bitcoin is favourable than investing all your money on altcoins which is risk for traders to embrace in the community.

[ethereumhunter]

Nah, I don't just invest on a new altcoins that doesn't have any history yet just like how BNB made it to the scene. If you are trying to invest in altcoin especially the new one that you thought would pump in the bull run, then think again because mostly of these new altcoins they didn't last a full month before they disappear. Some will stay for two or three months but after that they'll just dump everything in the market. This is the usual pump and dump coins that's happening every now and then but still there are people that would fall from their tactics.

If you want to risk on investing new altcoins, make sure you do your own research.

here's some tips from me if someone wanted to invests in altcoins but for some reason couldn't make some research first, it's better if they would just follow the many venture capitals in selecting the project, of course the venture capital would've made their own research in regard of the project even though we all know these venture capital usually are having some deal behind the scenes but at least better than just betting away your money.

But it's still risky to invest in a project without doing research. We know that many altcoin projects out there fail to attract the attention of investors and ultimately cause the project to not go ahead with its plans. Investing in altcoins is risky, with losing money, but if you are willing to accept the risk, you can go ahead but don't regret it if, somehow, the project doesn't develop properly. For now, investing in ETH and BNB is recommended as those two coins are in the top position of the list. But to invest in other or new projects, you need to do more research to find the right project.

[yazher]

As long as it's a new altcoin, there is always a possibility that it will be a scam even if it's launched in binance launchpad.  You are investing so at least get the top projects. 5/10 is already a bad ratio. This is not the time to buy risky tokens, no more buying of unknown projects.

I look it up on CMC, they added a warning on the ALBT page that says.

It's really hard to choose on those lists of new altcoins because most of the time they were not created to add some convenience to the crypto industry but they are one of those who will gonna ruin it because they have caused so much confusion to the new investors and it was one of the reasons why people are no longer interested in investing because those who got fooled will share their stories to their families to prevent them from falling in the same trap over and over again.

[stadus]

If you are a altcoin investor, do not keep all your eggs in one basket, if you believe in an altcoin, make sure it's not the only one, in fact, the more coins you have in your portfolio the lesser the risk, because not all the coins will go bad or get hacked, if one out of 5 or 10 become successful, 6x to , 10x or more, you've made back your ROI and still have some gains.

Hackers are really aggressive this time, we can't just simply ignore their presence, and spreading our investment 2-3 different projects could likely save us from them, from taking our funds. But this is not the only thing we have to check, we also consider the potentiality of the project otherwise, it is impossible to have ROI, it was just the same as getting hacked. A wise investor will never choose a project that doesn't give profit assurance like investing in new projects.

[swogerino]

Since I am not an initial investor, this is the first I've heard of Alliance Block. But I've already learned from my previous mistakes with related to altcoin. My biggest mistake in life was picking a shitcoin, which cost me a lot of money. Then I stop investing in shitcoin. Actually, I don't need 10X. Enough if I can turn a tiny profit. Therefore, only select popular coins at the moment that follow the trends.

That is the best approach.We should focus our efforts in the top 20 coins in the list of coinmarketcap which list every coin based on their total market value.If we stay in the top 20 we have almost zero risk as most of them are coins that have resisted time like LTC,DOGE and ETHEREUM to name just a few of that list.

If we want to give a shot in order to get some decent substantial amount of profit we can start going further but not much further and invest some money or some mining power in new promising coins like ETHW,ETHF and ZIL to name just a few.However I would never invest in some unknown altcoin like this Alliance Block which is the first time I read about this here.

[mdzahed134]

I heard first time about AllianceBlock Price (ALBT), according to Coinmarketcap i see a warning possibly it’s hacked or rug pulled something like that. Yeah, i learned in few years ago, when i lost a big just for invest in a project. It’s a good strategy to invest in several coins to reduce at your risk, i always following it.

[SquallLeonhart]

i learned in few years ago, when i lost a big just for invest in a project. It’s a good strategy to invest in several coins to reduce at your risk, i always following it.

Perhaps you are again making mistake just because of your costly lesson. I mean just because of diversification, if you deliberately go for more coins then definitely you will end up biting dust. For this reason, it is highly recommended to go with bitcoin for 95% of your capital and only for the rest, you may go for altcoins. Here 95% is not your total capital of your life time; many people do mistake here.

You must diversify your capital with gold or bonds or stocks of your country and/or real estate; from this you will allocate some funds for cryptocurrency and within that capital, you should again diversify by allocating 90% or 95% to bitcoin. This way you will get better chances to secure your future.