Sirwin
Sirwin

Suspected GoodDollar hack (or rug pull?) - UPDATE #1

By LeftFooted | bitcoinea | 17 Dec 2023


I'm beginning to think that the only true hedge we have is diversification.


It is virtually impossible to be 100% certain with anything. Cash isn't 100% safe due to inflation, CEXs aren't 100% safe for a million of reasons, and even hardware wallets aren't 100% safe chiefly because hacks happen.


Sure, you can do a lot to protect yourself, getting out of shi*ty projects is a start.


Setting up complex passwords (that you change often) and setting up 2FA is another.


Using verified and trusted services is another.


I feel reasonably safe using Metamask and Trust, I wouldn't feel safe using BROTOLDMETHISISTHEBESTWALLET.YO.


There's been another hack. One that impacted me because the related token lost 90 percent of its value. So my holdings went from $0.63 to $0.07.


Obviously I'm inserting a little bit of irony in there, losing $0.50 makes no difference, but I'm a little bit sad because the (supposed) hack in question impacted GoodDollar.


And I'm sad for two reasons. Not because I lost $0.50 but because I personally know people who work at the organisation, especially one of them because we used to work together for a different project.


And also because I think crypto-based UBI, which is what GoodDollar is doing, is a good idea.


Now, GoodDollar hasn't confirmed nor denied a hack has happened. We're still in the early stages.


BUT.


First, the GoodDollar wallet shows a rather unmistakable message: "there's been a security breach, the app will be disabled until further notice".


5626d23143b67161ec7b2c1485e76ecccf20e4e4b20c620194856b4539a6413c.png


Second, the value of G$ went down by 90 percent. With my Sherlock Holmes hat on, I'd say something bad happened this morning between 2.40 AM and 3.50 AM, based on an unusual spike in blockchain activity around that hour.


I hope they can recover. And I also hope other projects come up with viable use cases for crypto-based UBIs.


In the meantime, I have no other option but to further diversify as a hedge against risks.


How? I'm gonna buy more beer.


UPDATE, DEC 17, 2.10 PM GMT+1

It seems somebody sent a large number of tokens (worth nearly 6 figures in US Dollars)to a decentralised exchange and swapped them for $USD.

It may be hack, but an inside job (ie, rug pull) isn't ruled out. If it's a hack, it's pretty bad. If it's a rug pull, it's even worse. 


DISCLAIMER: This is a living article because it's inspired by ongoing events that are heavily affecting the price of a specific token, expect updates in the coming hours and days.

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LeftFooted
LeftFooted

I’m a left-footed duck that loves writing. I write about cars, watches, craft beer and, you’ve guessed it, crypto Also active on read.cash


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