$10 087 000 USD

SEPTEMBER 2020

GLOBAL

PIZZA DEFI

DESCRIPTION OF EVENTS

"Crazy returns one slice at a time. Pizza is where bitcoin started as well. 10000 BTC for 2 pizza in 2010. Now 1000 [pizza] every block." "[C]loned DeFi platform called Pizza Finance offered six-figure returns for its liquidity providers." "They are essentially clones of other defi platforms, some of which are clones themselves."

 

"Some market watchers have claimed it is not wise to search for the next big DeFi superstar, as there’s a risk of getting burned. But because these confident and exuberant crypto investors blinded by greed simply cannot resist the allure of profits, they are betting their Ethereum and suffering losses." "It is quite possible that groups of coordinated traders throw themselves on a token so that a FOMO effect engages in its regard."

 

"HOTDOG, PIZZA and KIMCHI went on sale and in less than 24 hours they have experienced a Pump & Bump movement where a series of Ethereum farmers inflate the price of the tokens to the maximum ( pump ). Then, they exit their positions, reducing the value of the token to almost zero ( dump ). You could say that the DeFi Food has expired quickly."

 

"According to Uniswap.info, a spurious token from Pizza Finance pumped to $370 then dumped to zero within two hours on Sept 2." "These tokens were being dumped while others were mid-farming them at decent valuations, but have since plummeted to nearly zero per token."

 

"$PIZZA is not dead. We are resurrecting back. Had COVID cases in family. We would get $PIZZA everywhere. Dev has not used even a single token. Earlier tokens were burnt. And we are going to burn again. Planning to make rewards 1/10th."

Pizza Finance created a token with almost no initial liquidity. This spread virally, for reasons that are not immediately clear, since there was nothing inherently unique about the token and many other tokens also call themselves PIZZA.

 

While no assets were lost, all participants who purchased the tokens for a high price and didn't sell in time suffered trading losses. The project's website and social media are still online, and the last tweet mentions that the project is still alive, though that was on September 6th, 2020.

HOW COULD THIS HAVE BEEN PREVENTED?

There were no assets lost in this case. Exchanges should not list tokens which have existed for less than a week and have no liquidity.

 

Check Our Framework For Safe Secure Exchange Platforms

Sources And Further Reading

 For questions or enquiries, email info@quadrigainitiative.com.

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