Security and Scams (Part 1)
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Preventative Double-Rug Measures
Our team is actively working to add new security features to prevent perpetual fraud on our platform by malicious devs from rugged projects. The most obvious feature of a rugged project is a minting function in the code. In that instance, a malicious dev would be able to mint new tokens once listed in our tombs in an effort to remove our token from the liquidity pool, functionally “double-rugging” our users. For this reason, rugged tokens with mint functions will be ineligible for our TOMBs in order to protect users from being “double-rugged” by developers who still control a minting feature in their token contract. They will still be available for our GRAVEs, as the GRAVE only uses tokens for verification purposes only. We have some unique ideas for rugged projects with minting functions, stay tuned for more!
Additionally, rugged tokens will also be prevented from participating in our Tombs where it is discovered that a malicious dev is still in control of the large portion of the rugged token’s circulating supply. Scammers are creative and always coming up with ways to take advantage of the DeFi community, and our team is working hard to provide unique ways to resurrect your rugged tokens in a way that makes sense based on the features of each dead project.
Example: Autoshark($SHARK) was a token issued in 2021 and was quickly exploited after launch by a flash loan attack on the Binance Smart Chain. The current wallet holder/attacker of $SHARK held over 50% of the supply, which he himself minted. Our team will not reward such behavior and as such cannot offer a Liquidity Pairing of $SHARK because the hacker would be able to exploit the liquidity of our own token because of their large holding of $SHARK. We can reward those affected users in other ways, but financial compensatory features through TOMBS will not be possible for tokens such as this.How does the team select rugged tokens?
It is GRAVEly serious situation when a project is “rugged” or deemed a scam. (See what we did with that pun?)
Our team has a process to determine what projects we will list in our graves and tombs. Some tokens are clearly a rugged/scammed project, some are dead due to developer inactivity or exploits from hackers.
Our team will consult a variety of elements as well as some trusted 3rd parties and partners (stay tuned for a helpful infographic and continuing partner updates) to know what projects to list as we know the act of declaring a token dead is a quite a serious statement. A few considerations our team has:
- How long has the project been deemed “dead” (this is an effort to avoid malicious attempts to rug tokens on purpose in order to rob our tombs of liquidity);
- GitHub activity and existence of rug-features such as migration codes, minting features, etc.;
- Price action of the token, volume, liquidity, and on-chain information (Some price action is quite normal, and we will work diligently to discern whether people are simple FUDding projects that are very much alive); and
- Community engagement and requests (Eventually token holders will be able to vote to pronounce projects dead. We will call these funeral services, kinda morbid we know.)
- Post-Mortem analysis and 3rd Party audits on hacks, rug pulls and scams from trusted advisors. (stay tuned for more information regarding this)
See more about RugZombie in our other posts on Medium or Publish0x:
Welcome to RugZombie — An Overview
Utility = Value (and why RugZombie Team are builders)
RugZombie — The Problem & The Solution
The information shared in these docs, our roadmap, our lite paper and white paper, and social channels such as this blog, is not financial advice and should not be misconstrued as such. The primary purpose of these documents is to provide potential token holders with pertinent information in order for them to thoroughly analyze the project and make an informed decision. Engaging in cryptocurrency projects involves substantial risk and it is strongly advised that you consult with a financial professional prior to your participation. These documents do not constitute a prospectus or offer document of any sort and is not intended to constitute an offer of securities or a solicitation for investment in securities in any jurisdiction. Neither RugZombie nor any of its contributors or creators shall be held liable or responsible for any errors or omissions concerning this project or for any damage you may suffer from your participation or as a result of failing to seek competent financial advice from a financial professional. This white paper is not in any way intended to create or put into implicit effect any elements of a contractual relationship.
Originally published at https://www.publish0x.com.
