Rug pulls can happen in any token. If the development team is shady, it is a dead deal before one starts.
That is why it is buyer beware. It is also why many of us stick with Cubfinance and do not stray.
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It's the code in the smart-contracts. Devs don't see all the holes or consider all the possible exploits in what they're writing. They do it too fast. They falsely assume something covers an area of concern. They rely on open source code from other places that hasn't had the exposure they're about to get. Or they just make a mistake and overlook something.
There a many different ways for a hacker to wriggle through a crack. Many of which they find almost accidentally. It's why audits are important. Bounties are important. And knowing the team is important.
Nobody really cares about the code when there isn't anything to protect or lose. But put a few million dollars or more underneath it, and now there is an incentive to attack it. Like I said, Ethereum is open source so basically ANYONE can build something on it. Just like anyone here can build their own token. It's important to know who you're jumping into bed with when you're putting your money at risk.
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That is true. Blocktrades also noted that there are holes in the code because most are not familiar with Solidity. That is why the fact that these smart contracts are written in code that the developers are not fully aware of creates vulnerabilities.
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Which is why HAF is going to be such a big deal. Full circle. :-)
I read through that Speak Network Proposal and even they talk about the fact that working with HIVE is difficult in certain areas right now because of writing to the blockchain. They're actually going to use Peerplays for some of the tokenomics stuff and fully migrate it to HIVE later. I asked the question "Will HAF solve this?". I'll be curious to see the response.
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Nice! I still have to read it in detail but it looks promising.
HAF could help with that from what I understood of Blocktrade's interview on Cryptomaniacs but we'll see.
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It's true that rug pulls can happen in any token. But are some development platforms more susceptible to them than others?
The complaint in the post is about ERC20 tokens, but it's also true that Ethereum is the largest of the development platforms. More opportunities for mischief. Had Binance been the largest development platform at the time, maybe the complaint would be about BEP2/BEP20 tokens. Size matters in crypto as much as it matters in relations.
DYOR is fundamental any time we want to invest in a crypto, even a shitcoin.
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Poly had a number of hacks too, didnt they? I am not sure of the chain...was it Polygon?
I know there was one hit like 3 times in a week or 10 days.
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Yea they had
And also ThorChain had a few in a very short time.
It could also be the case that hacks on Ethereum make more news but I think, as you said, they can happen on every platform if the devs are sloppy
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