Edit:
It seems the pool contracts for Coral and Diamond (where all the money is) are under multisig:
Coral requires two other signatures (20+2) out of 12 possible:
And Diamond requires two other signatures (20+2) out of 3:
It’s surprising to me to see $38M in an account that’s less than a week old, but at least they are under multisig. I don’t know why the token contracts are not.
Thank you to Yves who pointed this out on Twitter.
For over two years I've been working with some dedicated people to promote the creation of DAC Enabling tools through eosDAC such as the DAC Factory (which is now soft launched, if you want to try it out).
Why? Because I'm sick of watching people get scammed out of their money.
Just today I noticed some people in Telegram talking about the "Emerald Mine" account which just got drained of almost $2.5M worth of tokens.
I pointed out last night that the Diamond Mine (which Emerald seems to be rip off of) is also not on a multisig. Tonight I noticed neither Organix nor Corals are multisig either.
So what is a "multisig" anyway? It essentially means one person can't runaway with all the funds which are supposed to be locked up in a liquidity pool. It means a number of parties have to agree and sign a message for any transaction to go through, such as a transfer of funds or a change in the contract code.
I talked about that a bit more in a recent Hive Post here: Will the Real #DeFI Please Stand Up? and in this Tweet thread here:
This stuff is really important to understand if you're going to put real money in a token. You have to look at the token contact to see who controls it. If it's a multisig, that's a good step in the right direction, but then you have to ask who those people on the multisig are and can you trust them? A DAC (Decentralized Autonomous Community) enables the token holders to select who controls the multisig.
If we're going to "be our own bank" when it comes to cryptocurrency, we have to take personal responsibility to learn about this stuff and warn people who are throwing money at scam projects without doing their own research.
Be careful. Stay away from things you don't understand because the promise of a quick buck could leave you with nothing.
Posted on Voice also.
Always informative, thanks Luke!
Thanks for the nice info. Don't know why this space is filled with so many scams and people invest blindly. Defi hype will not last long if people are louted in such a way. Only some legitimate Defi tokens will remain behind.