GameFi Rug Pull and Accidentally Closed Exchange
In the space of 24 hours, developers of a play-to-earn (P2E) GameFi project apparently pulled their investors, and a Solana (SOL)-powered exchange shut itself down by mistake — all of which remind us of risks in the crypto space .
Per blockchain security company PeckShield data, GameFi (P2E blockchain powered games) project HeroCat seems to have pulled its investors. The game’s token, HeroCat Token (HCT), has lost more than 99.9% in the past week, according to data from CoinGecko.
PeckShield said that HCT, which is developed on the Binance Chain, “made a big sale and transferred” about USD 151,000 worth of the binance USD (BUSD) stablecoin. HeroCat has yet to release any updates on the current situation.
Meanwhile, a Solana-based DeFi project has accidentally shut itself down due to a developer error. “Decentralized Options Exchange” OptiFi said they shut down the project during a routine upgrade yesterday.
“We accidentally shut down the OptiFi mainnet program and it cannot be recovered,” the project’s official Twitter account said, adding that the error resulted in the loss of US$661,000 in funds, most of which were from team members.
In a postmortem, the team said they wanted to upgrade the protocol on August 29, but canceled the operation when the rollout took longer than expected due to network congestion. They then noticed that a new “buffer” account had been created and that OptiFi had already transferred slightly more than SOL 17.2 (USD 558) tokens to it.
The team attempted to shut down the OptiFi program to recover these assets. The scheme worked, but instead of shutting it down temporarily, the program was shut down permanently.
“We will return all users’ deposits and settle all user positions manually according to the PythNetwor oracle at 08:00 UTC on September 2,” the team said.
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Learn more:
– This is what the FBI recommends to DeFi investors
– What DeFi offers beyond lending for crypto speculation
– How to detect the next Celsius before it is too late
– Nomad DeFi Bridge drained of at least $150 million in “chaotic” “decentralized heist”
– 7 DeFi risks you should be aware of according to CoinShares
– DeFi suffers from too much centralization, what can be done?
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(Updated at 14:17 UTC: the section about DeFi lending protocol Cream Finance was removed as the exploit happened in August 2021, not 2022, as reported.)
