The past few days have marked a renaissance in altcoin trading: previously unknown projects on Uniswap, the leading decentralized Ethereum exchange, have rebounded by thousands of percent. Even some bigger names are up hundreds of percent, which is kind of beneficial given that Bitcoin and Ethereum have stalled.
Some of these rallies are based on real innovation: SnowSwap partnered with BadgerDAO and then ran 500 percent, while Dynamic Set Dollar, a competitor to Empty Set Dollar, has entered the bootstrapping phase and is up 1,000 percent.
But it has reached a point where there are some traders out there buying an absolute end that gets in their way and looks interesting from a distance. This made it ripe for scammers to try and make money quickly.
So mature in fact that last Friday there were three “carpet pulls” within one day.
A “carpet train” is a term popularized in DeFi last summer to describe hacks or scams.
The two “rebase” carpet pulls
In recent days, one of the biggest trends in the DeFi speculator market has been to buy new coins.
Rebasing is a crypto term popular with Ampleforth. The basic idea is that the supply of a cryptocurrency can shrink or expand depending on demand or certain price thresholds that traders have to comply with.
For some reason, investors have been focusing on every newly based coin for the past few days. This includes questionable pre-sales started by new developers.
One coin, DeFiB, promised to be an Ethereum-based rebasing coin that would automatically affect the value of all DeFi tokens in circulation.
When the first rebase was planned on Friday, this was unfortunately not the case. The project’s developers suddenly went to AWOL and deleted their Telegram and Twitter, while users also noticed that around 600 ETH (~ $ 300,000) of liquidity had been withdrawn from the DeFiB pool.
Monkeys don’t fork in every guys. I’m a full-time rapier, but I’m never a monkey even at the dips before I almost turn to developers LinkedIn or TG. $ DEFIB rugged ~ 600 $ ETH
I don’t have a monkey in it. Not a penny. I’m sorry for your losses. There are good rebase projects. Not all forks are bad.
– gokhan.eth ???? (@ 0xgokhan) December 11, 2020
Strangely enough, some of the lost funds appear to have been returned to those affected.
A little later there was iBase, another coin that is newly based. Many were certain this would work as it was supposedly founded by a developer on a long-standing “yF” project, yFFS Finance, which has existed in a lawful capacity for the past several months.
Reportedly, around 300 ETH (~ USD 130,000) were raised in a private presale that took place over a period of less than a minute.
The developer wanted to use part of the ETH collected in advance sales in Uniswap so that speculators can bet on the coin. However, when it was time to provide these funds, the telegram channel for iBase was deleted.
YFFS is also down 85 percent, with many assuming that this “carpet move” also marks the end of that token.
A decentralized fund manager platform steals nearly $ 1,000,000
Yesterday’s biggest carpet move was the theft of roughly 1,450 Ethereum, or roughly $ 800,000.
The DeTrade Fund, which supposedly would allow any Ethereum user to participate in arbitrage (a trading method often referred to in advanced funds) raised 1,450 ETH in a presale.
It has caught on in some segments of the Ethereum community as the company was registered in the UK, audited by a reputable Ethereum auditor, and what appeared to be a “doxxed” team.
But yesterday the team deleted their social media profiles and ran away with the money.
There’s an ongoing debate on Twitter about whether the team used a freelancer or even a “deepfake” with artificial intelligence to create a character to promote their product. Proponents of the deepfake theory point to the video below, in which the project leader appears to be talking about the DeTrade Fund.
Check out the DeTrade Fund “CEO” video which was just robust. The sound is a little delayed due to the screen recording, but you can see that the video is buggy and is an AI. This needs to be passed on to everyone so that we can be more careful in the future. #Defi #crypto #uniswap pic.twitter.com/Q7Fu1nnD3h
– The DeFi Zeus (@DefiZeus) December 11, 2020
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