Fun

Defi Trader Pockets $250k From Bug Exploit, Hints at Possible Exit Scam by $SYFI Devs

News Feed - 2020-09-10 08:09:15

Defi Trader Pockets $250k From Bug Exploit, Hints at Possible Exit Scam by $SYFI Devs


An anonymous Defi trader says he gained almost $250 000 after inadvertently exploiting a rebase bug embedded in the $SYFI Defi token. The trader, who insists he had no prior knowledge about the bug, got this reward after staking an initial investment of 0.5 ETH or about $175 at current prices.


In a long Twitter thread published September 6, the trader who uses the name Amplify thinks the bug was deliberately set in the rebase code. The trader suspects $SYFI devs to be behind the act.


To help his followers understand how the exploit occurred, Amplify starts the thread by detailing how he stumbled onto the bug and the split-second decision he had to make. The long explanation appears to be corroborated by earlier reports wherein $SYFI devs blame an unknown malicious actor for “wiping out most of the liquidity provided in the Uniswap pool.”


The devs also reportedly offered to reward anyone who could identify or apprehend the malicious trader. The price of the Defi token dropped from a peak of $174 last week to $0.00040 by Monday, September 7 as a result of the bug exploit.


However, the Defi trader beats back allegations that his actions had malicious intent. Instead, he condemns the actions of the developers “for having the balls to ask for a PRESALE for a forked coin and pushing it with unaudited code.”


The $SYFI Defi token is one of the many copycats of the popular token YFI to emerge since mid-July. However, unlike YFI, some of these knock offs have already collapsed while others appear destined for a similar outcome.


Having observed that $SYFI had similarities with some of the failed Defi tokens, Amplify posed a rhetorical question to the devs: “You want to mimic the price of $YFI, but won’t mimic it’s distribution? You want to sell a token that is, fundamentally and in no uncertain terms, another token.. but less of it?”


Furthermore, the Defi trader hints at even more serious allegations against the devs:I will not go so far as to argue that the token $SYFI was built with this bug in mind with the specific intent of fooling the community into thinking ‘liquidity locked’ actually meant something for a coin with faulty rebase code and would make for a blameless exit scam by the devs because ‘liq lock.’ But hey, there it is. Take it as you will.


Meanwhile, to prove that his actions were not entirely malign, Amplify says he will donate $10,000 from his winnings “to a gitcoin grant of my choosing.”


The $SYFI token joins the growing list of Defi tokens whose liquidity challenges ultimately caused a price collapse. Accusations of exit scamming are also becoming common following the alleged Sushiswap exit by its creator Chef Nomi.


What do you think of this Defi trader’s statement? Tell us your thoughts in the comments section below.Defi"s Raw Deal: Sushiswap Creator Transfers Multi-Sig Control to FTX CEOALTCOINS | 4 days agoSushiswap Founder Reportedly Exit Scams as Sushi Token Price TanksALTCOINS | 5 days agoTags in this story$SYFI token, Chef Nomi, Defi Boom, Defi Tokens, ETH, Exit Scam, gas fees, Liquidity Pool, Sushiswap, YFI token


Image Credits: Shutterstock, Pixabay, Wiki CommonsSpot-markets for Bitcoin, Bitcoin Cash, Ripple, Litecoin and more. Start your trading here.Show comments

News Feed

US Banking Crisis: Nigerian Banks Not Directly Exposed to SVB Says Central Bank Governor
US Banking Crisis: Nigerian Banks Not Directly Exposed to SVB Says Central Bank Governor A recent review of Nigerian banks’ bond portfolios showed that the institutions were
Meet the Antminer S19 XP — Bitmain Reveals ASIC Manufacturer’s Most Powerful Bitcoin Miner
Meet the Antminer S19 XP — Bitmain Reveals ASIC Manufacturer"s Most Powerful Bitcoin Miner At the World Digital Mining Summit in Dubai, the leading application-specific integrate
Web3 Gaming Still Growing Despite Economic Woes, According to Dappradar Report
Web3 Gaming Still Growing Despite Economic Woes, According to Dappradar Report According to a recent report produced by Dappradar, the Web3 gaming industry has managed to raise $75
Bandana Wearing Cryptopunk NFT Smashes Records Selling for $23 Million in Ethereum
Bandana Wearing Cryptopunk NFT Smashes Records Selling for $23 Million in Ethereum The Cryptopunks non-fungible token (NFT) collection has seen a new record as the NFT Cryptopunk #
MicroStrategy sells another $604M of notes to buy 9K Bitcoin
Helen Partz11 hours agoMicroStrategy sells another $604M of notes to buy 9K BitcoinMicroStrategy keeps aggressively buying Bitcoin while completing another $603.75 million offering of convertible notes.3413 Total views2
Filipino artists hacked to promote XRP scam
Ezra Reguerra10 hours agoFilipino artists hacked to promote XRP scamBen&Ben, a nine-piece pop band with over 3 million YouTube followers, started livestreaming a fraudulent XRP advertisement.2256 Total views13 Total
Telegram Users Can Send and Receive Toncoin Within Messenger Chats
Telegram Users Can Send and Receive Toncoin Within Messenger Chats Telegram users can now send and receive toncoin directly within the application’s chats, according to a tw
Stock Trader Dave Portnoy Dives Into Bitcoin, Only to Panic-Sell After Chainlink Plunges
Stock Trader Dave Portnoy Dives Into Bitcoin, Only to Panic-Sell After Chainlink PlungesHigh profile stock trader Dave Portnoy has panic sold his bitcoin one week after he got into
As Lightning’s Economy Takes Shape, Devs Are Split on Proposed Fee Hike
Fees aren’t just a topic of discussion for bitcoin users anymore. As the tech matures and an economy develops, fee discussions are making their way into the lightning network too.
Red Alert For Solana: 21% Price Drop Raises Fears Of Further Collapse
Reason to trust Strict editorial policy that focuses on accuracy, relevance, and impartiality Created by industry experts and meticulously reviewed The highest standards in reporting and pu
Déjà Boom—Arthur Hayes Says Bitcoin’s 2022 Rally Setup Is Back
Reason to trust Strict editorial policy that focuses on accuracy, relevance, and impartiality Created by industry experts and meticulously reviewed The highest standards in reporting and pu
NFTs and blockchain bridge Ethiopia’s past and present in new art exhibition
Vittoria Benzine10 hours agoNFTs and blockchain bridge Ethiopia’s past and present in new art exhibition“Ethiopia at the Crossroads” is getting a special blockchain boost for its final stint at the Toledo Museum of