DEFIBASE

DESCRIPTION OF EVENTS

"DEFIBase is a poorly built fork of the Base project. There was a problem with calling the Rebase function that returned the current token price to the initial one. The developers failed 280 transactions with a manual call to the price rebase function. The project team muted its chat and pulled 696 ETH from the general pool with several transactions" "made with ❤️ by Team DEFIBase"

"Rebasing is a crypto term popularized by Ampleforth. The basic idea is that the supply of a cryptocurrency can contract or expand based on demand, or certain price thresholds that traders must maintain."

"One coin, DeFiB, promised to be a rebasing coin based on Ethereum that would automatically gravitate toward the value of all DeFi tokens in circulation."

"Unfortunately, when the first rebase was slated to happen on Friday, it didn’t. The developers of the project suddenly went AWOL, deleting their Telegram and Twitter while users also noticed that around 600 ETH (~$300,000) worth of liquidity had been drained from the DeFiB pool."

"Weirdly, it appears that some of the lost funds were distributed back to those affected."

An anonymous development team launched the DEFIBase protocol, a smart contract which gave them full control over the token supply.

Instead of helping their users make a larger fortune, they decided to help themselves to all invested funds. This project was very small, so it was hard to determine the actual outcome.

HOW COULD THIS HAVE BEEN PREVENTED?

Having known individuals controlling a multi-signature wallet prevents any one individual from making off with the funds. For proper security we recommend at least 3 signatures from reputable and trained individuals.

Check Our Framework For Safe Secure Exchange Platforms

In one day, a total of $1.2 million worth of Ethereum was stolen in three DeFi "rug pulls" | CryptoSlate (May 27)
Investors Found “Rug-Pull” Scammers And Returned Some ETH | CoinGenius Hosts Virtual Crypto Event (Jun 13)
@defiking0 Twitter (Jun 13)
@Crypto_Penn Twitter (Jun 13)
Happy ending: Investors track down "rug pull" scammers, some Ethereum returned | CryptoSlate (Jun 13)
DEFIBase (DEFIB) ERC20 Token Analytics in Ethereum Mainnet (Jun 13)
@0xgokhan Twitter (Jun 13)
DeFi Yield (Jun 13)
DEFIBase Protocol (Jun 13)
Ethereum Transaction Hash (Txhash) Details | Etherscan (Jun 19)
Worldwide crypto & NFT rug pulls and scams tracker - Comparitech (Dec 15)

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