Sirwin
Sirwin

Shenanigans, by Thoreum!

By Storey Matters | Stories Matter | 17 Aug 2021


 

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I’d heard a few rumblings about this token which launched recently on the Binance Smart Chain Network, so I decided to take a look.

Recently, Thoreum’s APRs have become more realistic, but they initially offered astronomically high (in the millions, billions, and trillions) interest returns for staking and liquidity provision. This is a classic honey-pot strategy where the interest rates are drastically lowered once enough flies have stuck. I should add, however, that this strategy alone doesn't imply anything untoward. Other than they trapping you into holding, they may still have good intentions and are just making you HODL for your own good.

MCC-09 Owner is able to update Pools’ characteristics, and Emission Rate Centralization /Privilege Discussion Acknowledged ~ Certik Audit

It is worth noting that with the above statement, the Certik audit points out the ability of the Thoreum devs to alter their pool characteristics manually at any given time. This means they have the capability to artificially lower the honey the pots deliver at any given moment. However, at least they acknowledge this, eh? In the Telegram chat and social outpourings, one will be told that the fluctuations are down (hint, they're always going down) to everything but their own involvement. And, if one continues to ask awkward questions, they are labeled as FUD spreaders and blocked from the group. The chats will also be deleted to protect the fantasy bubble of investors from bursting. Again, this also doesn't prove that the Thoreum team are nefarious actors. FUD isn't good for any crypto but more so the smaller-cap tokens which could see their MC wiped out as a result.

Token holders earn reflections (a relative percentage of the buy and sell fees) in Thoreum just by holding it in their wallets. And, from what I gleaned through their Telegram group before they banned me (which I’ll get into later), this is the best way to hold their token. This is for two good reasons, in my opinion. When funds are deposited into one of the locked vaults, the lockup periods are anything from 14 days to 3 months, with the threat of a 90% fee upon withdrawal. You read that right, a 90% fee of your total stake. This gives the devs a huge chunk of your initial investment for nothing. However, once the lockup period is over, you are free to withdraw.

Providing liquidity is always risky, but it is even more so when pairing a shit token with a popular coin like ETH. So, if you risk buying Thoreum, holding the tokens in your wallet and earning reflections is the safest way to go. This also, of course, means you can sell them more quickly should the proverbial shizzle hit the dizzle.

There is a buyback and burn feature built into the smart contract, which induces more reflections. The larger your wallet, the larger your slice of the pie. This isn’t a bad thing in and of itself, but it wouldn’t be prudent if I neglected to mention that those asking for burns are usually the low-cap holders with the least to gain from such an exercise - especially when the whales dump for profits soon afterward.

Then there are the not-so-anonymous devs. I add not-so because this isn't the devs' first rodeo. Thoreum.finance is the brainchild of the GoCerberus and GarudaSwap team, who suffered massively (their token price crashed to zero) due to the Masterchef exploit that targeted non-native tokens. If you'd like to read more on that, you can do so from the Thoreum Finance team themselves, here: https://gocerberus.finance/ Does this mean the Thoreum Finance team is up to no good? Certainly not. After reading the dev's heartfelt and seemingly open message, it's hard to believe they were involved in the hack. But good con artists have a way of putting us at our ease, don't they? For anyone caught up in that hack who was invested in GoCerberus and GarudaSwap, the Thoreum Finance team has promised compensation.

The thing that got me banned from the Thoreum Finance Telegram group was my insistence that the team own up to being the team behind Thundercake. When one looks around the thoreum.finance website, the first thing that stands out is how everything is Thor-related. There are the Thunder Vaults and then ThunderBoost. So, it seemed more than obvious to me when an apparently new company came along with ThunderCake, a double reflection token providing 80% Cake and 20% Thoreum rewards. The Thoreum devs persisted with the narrative that the Thundercake link was merely a strategic partnership. Now there is also ThunderBNB with the Thoreum team claiming this is all part of their ecosystem, with one token helping to bolster and feed another. So, perhaps they are not so shady about their involvement in the other tokens anymore?

So, with all this said, do I think the Thoreum team is dodgy? Well, yes and no. It's possible they were involved or orchestrated the exploitation of the Masterchef code, but it's also possible they had nothing to do with it. The honeypot strategies they employ to trap investors before drastically and manually dropping interest rates could be merely that. After all, is it a trap if your investment actually grows?

Since my first interactions with Thoreum and now, the Thoreum token price has 1.5X, and Thoreum Finance has grown to an MC of almost $50 000 000. With their dual reflection sister tokens, ThunderCake and ThunderBNB, also growing exponentially, it's hard to ignore that, despite it all, they seem to be doing something right.

None of what I have written should be taken as financial advice. My musings are merely my own thoughts, feelings, and opinions. If you do choose to invest in thoreum.finance, DYOR. Stay SAFU out there.

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Storey Matters
Storey Matters

I write... a lot.


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