RUG PULL 🌊 EMM Post-Mortem [2/2]

Now to semantics 🍿

1] Influencers shilling 👾

I dislike the influencer insider zero sum pumps (positive sum games are fine). Was this one of those? Hm not per se. You see, we were all in the chat clicking the contracts and buying while 0 twitter people knew. They came in way later actually. Lobsters devs and community members were piling in at 200K AUM or so. So everyone was in the unknown here, at least I believe. No details about the game, finding clues... it's fun! Also, there were about 9 hours before the fomo started. Not coordinated. No insiders I believe.

2] Refund of 8M Dai ✅

Now people are talking about the 8M refund to be given at a snapshot to users, since it's on the Yearn Deployer address. Not sure this is the best strategy, but it's easy for me to say since I avoided the rug. I guess many would be voting for it, and it could offset the losses at a good rate. On the other hand, everyone knew what they were going for. And it seems like that is the solution people are going for: https://twitter.com/andrecronjetech/status/1310774715359924228

3] Test in prod and zero token value YFI meme ⚠️

Farms abused the zero token value meme and the “test in prod” narrative, so of course this marketing was going for EMN and GIL as well. But here you had no dilution and it was all a bonding curve with just a clope included. So an MMO rather than a farming bullshit scenario. Still weird, still sketchy a bit due to the unknowns, but very different. Everyone wanted a new YFI - got a rug instead. Risked for alpha, it is what it is. Again, easy for me to say, but it’s just a fact. Invested in shit ICO - do not call SEC, own it.

4] YFI team insiders ❌

No, YFI team members did not know. As I point out above, they were in the unknown and bought after other members did. There is no insider thing around it. Kirby? No clue. He has a fun shilly account, not a researcher-developer one. Don't put your responsibilities on anon cartoon accounts. I just want to avoid Y - which is an awesome dev community and product - being associated with outside activities. I know it's hard to distinguish from those, myself included, but you wanted alpha - and it was there. The hack wasn't expected by anyone. Don’t drag people with good intentions into the mud, those who have always stood for the community.

PS 🙏 my post is biased, because I have known Andre since 2018 and met him irl a few times. He was dragged around for being dishonest and taking payments on the side a lot of times, and every time it was wrong and he was coming out stronger. And he kept building and helping people. I am now in the position of just never doubting him. If I am wrong, be it. To top it off, nice reality check by Sam: https://twitter.com/SBF_Alameda/status/1310762299754295296

YOU RISK FOR BIG % -> YOU CAN GET REKT. Remember that.

After 3 months of being lazy... here is a new issue of the "using random data to fit your own narrative" piece 🦞

This time it's about 🦍 APE TAX 🦧 looking at MakerDAO, NexusMutual, KeeperDAO, Yearn Finance, KP3R etc.

Don't sub. No emails ever. No $.

PS: I made 100 mistakes with the explanations below, please correct and cancel me.

https://lobsters.substack.com/p/ape-tax-system-design

Merry Christmas 🎅🎄❄️ Simps [sorry, Twitch]

👩‍⚕️ Big brain nurses made maintaince/arbitrage bots for ESD-DSD... But they compete, waste gas fees, and thus are not efficient. So what do the nurses do? They go chat to each other from Ethereum addresses, trying to make a partnership -> https://twitter.com/Luciano_vPEPO/status/1342456661047451651. Maybe a charade, but this is super fun to watch!

🍆 1inch macbook-pro-drop statistics: 55,224 addresses are ennoscriptd to a claim - average airdrop amount is 1,629.76 1INCH (~$4,000) - median is 627.35 1INCH (~$1,570) - biggest claimer got 9,749,686 1INCH (~$25m) - https://twitter.com/n2ckchong/status/1342390398124130305. Insert penis joke to seem like a funny person. Here is a cool bot: https://twitter.com/1inchextractor. More info on how to claim your airdrop sers: https://news.1rj.ru/str/lobsters_chat/171926.

🦧 Every project needs a token, because governance is so efficient... and it's incentives, right! Anyway, zapper/dydx/etc. might end up with tokens, even when there is no need for one really. COMBO token is coming, and people already try to farm wallets to get some. Speaking of, 1inch had activity boost prior to launch (as info travels fast in crypto) but when the criteria to qualify were upped, many bots ended up being without an airdrop. See more here -> https://news.1rj.ru/str/lobsters_chat/172058

🔀 Rebase coins have been making astronomical 100x for people, there are quite a few degens who went from 1K USD to 6 digits on both ESD and DSD. So obviously, everybody is making a rebase coin now! This is a race to see when liquidity dried up first, or maybe I am just coping. Play with care, this narrative has been live for a long time already. DeFi is still hot as hell, and every kid is launching his own lending protocol - but recently options have been making the most hype, with a few protocols coming up. As well as stable rates protocols.

There is a new billion dollar protocol launching every day, new google for everything... Lido, Graph, Marlin... It's lively and fun at least. BTC ATH. Rug is not coming to crypto. See smaller and more frequent updates are in @TheDailyApe or Today in Defi on Twitter. I have no clue what to write about lol. Just be in the chat 24/7 and read 5,000 messages a day 🤷‍♂️

Enjoy the holidays and make sure to rug your family into some shitcoins xx

Check that input... savage.

It seems that one of the "dumpers" was a whitehack, and returned the money to one of the multisig signatories of COVER.

COVER was printed in trillions due to the reward claiming exploit, coming from the pool weight issue. At least that's the working theory. If you want to know what happened, read the last 500 or so messages: t.me/lobsters_chat/174823. NEW 🧿 t.me/lobsters_chat/175829

Update from the team: https://twitter.com/coverprotocol/status/1343581331448586245

We interrupt this weekend to spam you with more jpegs… This idea-proposal went from “lol funny shit this is retarded” to “ok if you want it, here is how it could be done”. Comment, engage shape the way!

🦞💎 https://twitter.com/10b57e6da0/status/1431691492398149637

LobsterDAO is just a fun community chat which has grown thanks to its contributors. As such, out of respect, it was never abused for shilling and was kept mostly impartial. If a few members come forward veto'ing this idea, we will just kill it. Please don't see the chat and the community as something proprietary. Everybody matters, speak out, please!

Any blabla chatter will be banned. Anybody asking how to get NFT (while it says in the article how to) gets banned. Any flood gets banned. Real lobsters don’t spam. They know how to ctrl+f and search for answers. If you don’t know how to be a real lobster u ngmi

Happy Thursday, this made me chuckle
https://www.youtube.com/watch?v=7bMJ0gB1ank

🦞 lobsterdao NFT collection 🦞

10b57e6da0 NFT drop is a commemorative art event for the community in the form of NFTs. It’s a loot box where you can pull out one of the cool pieces.

Who got it? How to claim❓all is here: https://github.com/lobster-dao/overview. You will be banned if you ask something that has been answered on github. The UI matches the merkle, meaning you better claim your NFTs within a few days. The UI should be up for a week, don’t miss it. Later on you will be able to do it, but it will get hard to do it manually w/o UI: https://ipfs.io/ipfs/QmZ3Y8kWZRUaj5omPVxBhBcF8RE62nKb7PLLnwbqcKq6Xd/

Low token ID != special NFT. There is no FCFS narrative in here. Later on, at the reveal ceremony (in a few days) the randomization will happen! Sunday or Tuesday, let’s see 👀 Then all the jpegs will turn into the real pieces with the correct ipfs path…

ALL INFO: https://twitter.com/10b57e6da0/status/1446530876142231585. No trading discussions, “hi” or any flood. High risk of permamute. Beware.

Reporting live from the studio next to Amsterdam with Louis Klibansky & Joseph Klibansky where the real-world sculptures & art have been created for years… and today marks their real digital-native #10b57e6da0 NFT release 🦞🦐🦀 swim, seafood!

🌊 https://opensea.io/activity/lobsterdao

Join seafood chat @lobsterdao

CoinList fishing for prime seafood 🦐🦞🦀 KARMA, BITCH!

From the makers of the Internet Computer airdrop and the Flow package of freedom - our friends at CoinList are fishing for the prime seafood with a sweet Karma-drop. Stay safe though, Gary Gensler might be after ur ass 👀

TLDR: Coinlist gibs lobsters Karma so they can have a higher chance for Priority Queue with new -revolutionary web 3 future google- projects. Well, jokes aside, they did launch Filecoin, Solana, Flow, and others. And next to that, one month of free trading on CoinList Pro. The snapshot has been taken at c̶a̶r̶d̶a̶n̶o̶ block height 13825000 which was 4 days ago. Of course, there are some T&Cs involved, KYC, and whatnot - so you decide: https://coinlist.co/help/lobsterdao-karma-drop-faq.

Overall, this is a pretty cool campaign by CoinList, who are forward-looking with how they approach community-building. They have been in lobsterdao since actually the first days of inception, and have been lurking in the shadows as well as contributing.

Tune in in a an hour to Twitter spaces with some of CoinList team members, and ask questions or be mean to them idk. Here are the details @ 5:30 PM CET -> https://twitter.com/10b57e6da0/status/1473445123547619335

At this point, we have a few promises for shitcoin drops (?), already a finalized campaign with Gearbox with quite a few cool tips they gave to lobsterdao, and now CoinList karma as well… these ugly seafood jpegs are productive assets?! NFT 2.0

Let’s sellout for more airdrops! We need exit liquidity 💪

Seafood might be going into the ocean? 🎣

Well well, let’s not jump so far ahead yet. For now, here is a piece a few founders & DAOs were asking about on “how can we collab sers?”

TLDR: be creative, offer a unique product, and shove up $50 airdrops into your butt cause that’s not gonna hut with this big/amazing/smart/simp community.

It also includes a few initiatives which have already been launched, like Coinlist’s free karma drop for an eye scan, as well as Gearbox stages, etc.

A few more things are in the works, fuck PFPs and let’s go! Thanks for staying wholesome xx happy delayed 2022 🎅

https://lobsters.substack.com/p/founders-and-daos-want-some-seafood

Seafood at TechCrunch 🦞🦐

This was recorded a few days ago and aired at TechCrunch’es online conference. Idk though how I ended up next to mega brains like Curve’s Mich and Lido’s Vasiliy 👀 Anyway, shilled lobsterdao a bit and Gearbox… Have a look at all of us taking a turn at shilling our bags to retail. PS: thx to Taariq ❤️

https://youtu.be/hhzVVCL5YWk

Lobsters have evolved over thousands of years. They have outlived dinosaurs and will outlive humans <soon video here>

The core NFT holder community needs to be recognized more and get its own place to meme, discuss alpha, and more…

Less ivanpleb, more fun, more alpha, some GIFs… and even allowed for some degeneracy-investments. After all, it’s the lobster sea!

and ye shrimps and langoustines and crabs are also welcome

This is a part of a bigger restructuring-growth & doing new cool stuff, starting off with a known yet simple idea of token-gated.

PS: it won’t anyhow influence the open research and DeFi flow of @lobsters_chat, this will just be a more private room where MORE can be discussed by those who are a part of the core community. The current kingdom room will cease to exist soon (so as the open discord which has been inactive), so if you are a lobster -> join the real one and be among your peers! 🦐🦞🦀 https://telegram.me/collablandbot?start=VFBDI1RFTCNDT01NIy0xMDAxNTc3NzExMjQx [collabland link, sometimes bugs on mobile]

One of the core researchers, Sov, looked into the data behind Uniswap Grants: how much $ was given, to who, who decided on the allocations, what were the benefits, and so on… check it out! Thx for help to Nemo & Daedalus Demons 🦞🦄 Would love to see continuation of this in context of DeFi Llama grants w 🦐 For example, a lot was spent on governance things, but we all know how non-existent UNI governance is (sorry). Would also be interesting to compare w a Yearn Finance open approach…

https://lobsters.substack.com/p/breaking-down-the-uniswap-grants

Sov is in with another long writeup - this time, on Polygon’s (Matic) history of grants evolution.

Enjoy the read 👉 https://lobsters.substack.com/p/polygon

imho [ivangbi]: as it comes from the post & also lobsters following Polygon in general since 2018 - it is pretty evident that the focus has always been on NOT focusing and “doing everything at once”. The spray & pray strategy might work so-so in investing (where the power law distribution turns returns into a below-inflation-number) but it worked in this case… probably, because founders haven’t slept in 3+ years. Throughout the entire bear, back when we all got rekt on Binance IEO - Sandeep kept hustling. Doing countless calls and just trying to do everything. Even the grants & the DAO approach don’t seem to organic, and 100 things happen at once. And is just their wei.

Some people take hustling as “dirty” and “not genuine”. I am one of such people, due to my laziness mostly. I dislike empty sales pithces, networking events, and crap like announcing before announcing. And that’s a large portion of Polygon’s success. And many other projects. Polygon have just really outdone it haha. Anyway, everything is a strategy, after all. And after a while, people forget about what was before - and only look at results. And at this point, Polygon has acquired a few things & projects, announced pilots with a bunch of brands (be it due to inherent external interest or paid deals) - which all led to organic traction at this point. Many now, organically, also choose to deploy there.

Do you believe the means justify the end? No one is right, you decide for yourself.

That is not exclusive to Polygon though, as other chains have also seen surge of demand due to multichain future being shilled to us all and tokens being printed. Let’s be honest, it’s mostly the shitcoins and new incentives most of the time. Avalanche, same story. What survives, be it Plasma or Sidechains, Rollups or whatever else Vitalik make up tomorrow (I know he doesn’t code himself, but people DO follow his word) - we shall see. The journey has been quite something for them. Cheers to the workers & builders.

Emergency press conference from J. Powell 🔉 “Fuck your puts, fuck your calls, J Powell has you by the balls”. All credits to https://twitter.com/CarlBMenger/status/1637701519926611969. PS: this is humour, not real… maybe. Don’t get liquidated.

Sup, crabs 🦀

We’ll be undergoing some restructuring here, mkay! Tell your imaginary online friends to follow.

There are many good news channels, many podcasts, many long-read writers… but sometimes you just want that sweet summary of the latest hottest topics. And that’s what we’ll try to do here.

The idea is to infrequently post based on a few categories:

👩‍⚖️ Governance Digest: large protocols’ governance updates and controversial stuff.
🕵️‍♀️ On-chain Sleuth: outstanding MEV, whale transactions, and other on-chain events.
🧠 Long Research: written maybe like once a month, on some random interesting topics.
✍️ Weekly crab notes: summarazing the hottest discussions in lobsterdao, general hot crypto news and crypto twitter larps & drama. Almost like NLW did on Sundays back in the days.

Infrequently. No spam. Please try reading for a week, and we’ll get your opinion after!

​​🧠 [Long Research] Topic: Ordinals & BRC20

Laser-eyed people figured out how to make their own shitcoins... and they are ecstatic! Is the bull here?!

Transactions fees are booming, activity and new startups are growing in numbers, their primary market has revived a bit, and all thanks to... bitcoin shitcoins. You heard that right. Read below for a little overview of what you might be missing 🦞

So… Ordinals.

A few weeks ago, Ordinals took BTC by storm, it was January 2023 when Rodarmor released the Ordinal theory framework. You can read some more here. Fast forward: Ordinals are data blobs inscribed on Bitcoin. Unlike 99.9% of NFTs on Ethereum and alikes, Innoscriptions on BTC exist on-chain rather than being hosted on IPFS or on other solutions.

What's interesting? 🤔 The rise of Ordinals was a surprise, having given a boost to the whole Bitcoin ecosystem. Whether it was the "NFT on Bitcoin" narrative or some other flavour of the month, a fact is a fact - activity, volumes, and huge gas fees! Different wallets, interfaces, data tools, and similar projects - have popped up in the primary market trying to jump on this wave. This has a few interesting things to talk about:

1️⃣ Some core developers, as their primal instincts take over, started to say “this is not how the founding father wanted this!" Nah, for real, they view it as spam and consider making all such activity as literally spam. See here from Luke for a bit more info but ignore the hideous degods picture.
2️⃣ Miners, on the other hand, might not be so upset. They finally get fees, which is a super interesting topic in the security budget debate of the 21M cap. It's an old topic getting especially relevant in the recent cycle, as the current main (financial store of value) use case of Bitcoin doesn't actually entail many peer-to-peer-cash transactions, since people hodl these rocks. As such, fees only have ever come from brrr emissions. Funny ha.

But… the crowd wants more gambling!

Welcome: BRC-20 muh standard. BRC-20 standard was created around 2 months ago as an experimentation for fungible tokens on Bitcoin. Or as a grift. Fast forward: BRC-20 tokens utilize Ordinals innoscriptions of JSON (JavaScript Object Notation) data to deploy token contracts, mint, and transfer tokens. See more from daddy CZ.

What's interesting? 🤔 People familiar with the matter (lol) are mostly of the opinion that BRC-20 is just a dumb concept, even worse than the Colored Coins have been. You could say their downfall has been due to high gas fees, impossibility of composability, distrust of the narrative back then... well, quite a few reasons possible.

There are 14000+ BRC-20 Tokens created as we speak with a total Market Cap of $440 M. (source) - so much scam has been created 💩 trying to sell new garbage to previously unaware holders who might not want to miss the scamcoin & nft season that we had on Ethereum. But

Now, it seems that scamcoins have fallen down quickly, but activity / wallets are trying to do something. So maybe there is something?

💭 Food for Thought:
- The BRC20 Standard adds “useless” on-chain data to satoshis, there’s really not much else to say there? Bad for bitcoin?
- They add “another subset of transactions competing for precious block space and interrupting your ability to secure 1 sat/vbyte transactions to secure your cold storage funds or create a lightning channel”, effectively “polluting" Bitcoin security model?

One and two more decent threads to recap. Again, you can discuss in kingdom or @lobsters_chat. See the conversation start with this message.

💡 Also, keep an open mind. Perhaps the initial failure of Colored Coins was simply due to the wrong timing and not the absolutely flawed architecture & developer experience? Or maybe these BRC20 are also a fake fugazi, but overall it allows Stacks to infiltrate Bitcoiner’s mindset? Looks like Miami is ecstatic. I am sorry, that hyperlink doesn't go to naked gym dudes pictures, it goes to bitcoin week.

​​🧠 [Long Research] Topic: Ledger, HW and Security

Ohayo, have you heard of the Ledge… - OMG STFU 🤬

Hold on; we won’t bore you with just an annoying recap. This post is more of a quick thought-piece for you to consider and maybe calm your nerves. Scroll to “What now?” if you are up-to-date.

Ledger fiasco 1-2-3 🤦‍♀️

A few days ago, Ledger announced the launch of Recover. It allows users who opt-in and subscribe to use it as a backup for their private keys. The service splits the user’s seed phrase into three encrypted shards and sends them to third-party companies… smth like that. Ledger, especially, made statements about their use of the secure element, and 6 months ago they published a post where they said: "A firmware update cannot extract the private keys from the Secure Element".

They pretty much lied to our face again. Morons, truly.

The trouble lies somewhere else - any HWW can have firmware written to extract the seed, as it seems after this charade. The problem is that Ledger is a closed source, so no one can verify that it isn't happening, no matter how much they promise there is no backdoor.

- Trezor is able to do the same thing, but it’s open-source, so you can kinda check it;
- GridPlus is the same as Ledger in this case, but they promised to open-source soon.

It all depends on your threat model. But if we decide to trust our information to Ledger, then it's worth remembering a story about the Ledger data leak that exposed users’ information in 2020 & more…

You already knew they could do it; you just didn’t THINK!

Remember when you were happily downloading new chains’ integrations on Ledger? But some of those previously have not been a part of the old encryption list. So, it was new-new. Well, this wouldn’t have been possible unless this “backdoor” existed. Basically, every developer around the world happily continued installing those updates and didn’t think twice.

What now, any alternatives? 🤔

Don’t update the firmware for as long as you can. When Metamask stops functioning with the older versions… well, seek another extension like Frame and the likes. That’s an option. Here, you kind of have to assume that ledger devs haven’t fucked us yet and didn’t backdoor a firmware before.

Alternatives: Lattice1 and AirGap. Just google them and read more.

TINFOIL ON, THE GOVERNMENT IS WATCHING ME 🪣

Welcome, Gnosis Safe. If you want the ultimate security, go make a safe. Make it 3/5 in case you are afraid to lose the 2/3 keys. You have to believe contracts are safe, but with the amounts they are holding today… we all pray they are. It’s like Saylor, if hacked, it’s all pretty bad from there.

Be careful not fucking yourself, unless you genuinely like DP…

You can go very far with upgrading your security, so my question to you would be - are you sure that you are worth it and that you know what you are doing? If you are not a developer, there is a high chance of you facking yourself over with wrong moves. Are your $$ even large enough?
- If you use a VPN like NordVPN, it’s dumber than no VPN
- If you double-encrypt something, it’s dumb as hell
- If you use your real name in apps, it’s also unsafe

How safe can you go, anon? Well, you aren’t anon after all. Don’t go too tinfoil; it never ends well. But if you must… CIA writes about these things (not the agent, lol) - you can check it out.

More threads 🦞

- https://twitter.com/Mudit__Gupta/status/1659071865762230274
- https://twitter.com/notsofast/status/1658538053219016707
- https://twitter.com/PixSorcerer/status/1658511668853501952
- https://twitter.com/hosseeb/status/1658740433361702913
- https://twitter.com/web3_Phil/status/1658525128928395269

​​🕵️‍♀️ [On-chain Sleuth] Topic: memecoin fomo

Omg it’s all going up! Everyone is making generational wealth except for me…

- I thought the same and spent half a day coping back in April. But it isn't my first rodeo, so: today we look at the most popular meme coins and how much money they really generated for the buyers. Below are some theses and lousy statistics on their performance.

⭕ BRC20: all are in losses.

They started late; they are much less liquid; their total market share was around $450M and is now $250M. And keep in mind that 65% out of that was always attributed to the original BRC20 ORDI, which has been down only. Don’t pay attention to the capitalization numbers etiher, on low volumes they are very manipulative. If you wanna read more on Ordinals and BRC20 taking the Bitcoin ecosystem by surprise, scroll up. Also, lack of wallets, trading tools, trading analytics, and so on - don't let it grow more either.

🔹 ERC20: a better profit-making story, but still pretty bad. See the chart below 📉

It couldn’t include the exact launch pricing in all cases and not all coins, as TradingView doesn’t add all or right away. It’s just a visual representation of the point: unless you got in during the first week(s) before end of April - you are most likely in losses. See Coingecko. The TradingView charts addition was pretty much the peak on May 1, and that's when most people got in actually, huh.

What’s still in money is $ PEPE and $ BEN (made by a presumably anon account), which was endorsed and then taken over by another fraud, BitBoy Ben. And $ PSYOP, created by this anon ben account - where the token was just launched a couple of days ago, but (i) close to 95% of the suppy is still in the hands of that dude who pre-raised > $7M and (ii) not even presalers are unlocked. It’s fraud all around. Quite likely, they both overdid it this time. Even Ran Neuner never did it so relentlessly.

But ser, DeFi coins also went down… What’s the difference? It’s all a scam?

Eh, there is a big difference.

Food for thought 🦞 Narrative trading vs Investing vs Scamming

Surely, any asset has a price - up or down, but always to the right. However, it matters what the underlying narrative and fundamentals actually are. Not for the health of the industry even. You can be as nihilistic as you want, be yourself. Is ok! But if you buy a shitbag, there is 0 guarantee anyone else will buy it. There is no narrative to grasp to, no reason to hold, no better picture of the future.

Buying literal scams means you (i) need to be hella sure you are first, and (ii) you have someone else to dump it on. With investing, although you also sell to someone else later - you get to support builders, something gets created, an ecosystem gets developed. It’s at least somewhat productive. And that productive part, however much it is memed, is relied upon in narratives. Even Verge memes were hanging a lot on the privacy and Pornhub payment acceptance narratives in 2017-2018, whereas Dogecoin spent a part of the cycle relying on Elon and being his go-to-payment coin.

There are different ways to get a narrative going. End of the day, price action defines everything that people believe in. But while you can’t influence the price directly (you can’t magically invent buyers)… you can surely build something decent, interesting and excite people with that. Who knows, maybe you create something cool along the way. But shilling scams to your friends aint it, frens.

You are just coping, loser!

This is not a high horse post. It’s just truly not a sound investment strategy. Unless you have an edge and actual access by beating everyone on time AND you sell the top - it’s not for you. No fomo! PvP will get you buried fast, and it’s not a fun place to be in. This one-month cycle had 3 winners and 10,000 rugs and full losses? Ye, math doesn’t align on that, onto the next narrative 🫡

​​🧠 [Long Research] Topic: Fucking around with keys is a bad idea!

Migrate your seed to another hot wallet: no.
Migrate your keys from ledger to metamask: no.
Fuck around with seed generation: no!

💡 This news piece is not new-new. It's more of a wake-up call, based on recent recent information on how big the numbers were. Stop using unsafe systems if switching costs are so low! Changing a 2FA app or sending a few coins to the a address isn't hard at all…

Remember the GCR tweet from a couple of years ago? It says that even if you hold some of the good assets, a gazillion non-economic attack vectors can mess you up: your mobile phone security is weak, your keys will get lost, your seed phrase sheet will get seen by a random person, etc. There is no need to be a security junkie, but at least don't hold 7 figures in a phone app LoL 😰 like the atomic sers below.

It's not even about wrenches or sophisticated attacks, it's just common sense. For instance, a friend of mine almost lost their seed phrase from their Metamask when the laptop was broken... "I just never took the time to save the phrase after 6 months of daily trading". Another one had a similar situation, despite being knowledgeable about security. It's just negligence; it's not rocket science.

And just yesterday 👀 yet another Profanity thing came to light, unfortunately affecting KP3R, see the post-mortem. An attacker got hold of the governor of a whitelisted job in Keep3rNetwork v1. Tthe governor address was generated via Profanity, making it vulnerable.

Again: fuck around with cryptography, find out. Similar to fucking around with oracles in DeFi.

-> Back to the hack summary of Atomic Wallet
NEW 🔥 more losses were found, reaching $100M . See fresh Tay's thread.

The breach started on June 2, with reports of assets disappearing from users' wallets surfacing on June 3. The largest victim of the hack was on Tron, with 7.95 million USDT stolen, and the total losses amount to $35+ million. The stolen funds were converted into Bitcoin (BTC) and then laundered through a mixer called Sinbad, favored by the North Korean hacker cell Lazarus. Ahhh, it's all Lazarus isn't it…

The exact cause of the hack is still unknown, causing concern for the over a million users who may still be vulnerable. One theory suggests that a malicious update transferred users' private keys to the perpetrator when they opened the app. Atomic Wallet's security has been questioned before, and an audit conducted in 2021 raised concerns. Who says Trust Wallet or any other closed source wallet or extension doesn't suffer the same…

Software wallets, like Atomic Wallet, are considered fundamentally flawed, as they can be compromised easily. These recent incidents highlight the need for better security in the crypto community. To mitigate risks, it is recommended to trust open-source wallets, diversify holdings, and remember the importance of controlling your keys. And not by generating through weird apps! Stay safu, crabs 🦀

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- Thread by ZachXBT
- Visual & thread by Tay

PS: sumimasen, we were swamped with work for a few days, back to slow writing again.