An anonymous user lost more than $ 140,000 in UNI tokens in a scam perpetrated within the DeFi ecosystem under the command of the UniCats project.

According to information published by various media networks, an anonymous user deposited the above figure in UNI tokens to derive MEOW assets, under the expectation that said assets would revalue over time, as occurred with initiatives such as Yearn. Finance or Sushiswap.

However, what the scammed user did not know is that the UniCats smart contract contained a “back door” that allowed the operator of the same to extract the funds stored by investors.

In this way, the creator of UniCats took advantage of the gaps in the governance mechanism to take control of the affected tokens, subtracting in two operations a total of 36,000 UNI tokens, whose estimated value at that time was about $140,000, and later changed them in Uniswap for about 416 Wrapped Ether (WETH).

Although the victim, in this, case lost around $140,000, associated reports assure that other victims together lost more than $50,000. Manuskin said the scammer moves the funds to a mixer to prevent victims from tracking him down.

According to the researcher, this would be the first case of large-scale scam in a DeFi token of this type, since unlike vulnerabilities exploited by hackers; here it happened that the programmer left this door open to take advantage of investors deliberately.

Scams and smart contracts

At the height of DeFi, many people lose sight of the fact that they could take big risks by putting their funds as collateral, in the expectation of rapidly multiplying their capital in what appears to be very safe offerings.

Cases like this and many others show that criminals are everywhere and that it is increasingly important to know in detail the operation of digital currencies, associated markets, and projects that seem like good investment offers.

Such knowledge is quite useful to stay away from false promises, which seek to take advantage of misinformation and the expectations of those who aspire to multiply their capital without much effort.

No more than 1% of a trader’s portfolio should be at risk in a single trade – this is the key to sustaining multiple consecutive losses. They must test and adjust their plan over a long period – hundreds of trades. A good system gives the trader an advantage over a long time because randomness becomes less relevant with a larger sample.

A good trade should be one in which a trader planned his trading, negotiated his plan, and managed the sum of all risks; those are all the elements under the trader’s control. It is NOT defined by the result.

A bad trade, on the other hand, is when a trader does not follow his rules and executes trades against his better judgment. This will always be a bad deal, even if it turns out profitable, the move will lead to a bad end.

By developing a well-tested plan, traders can overcome the hurdles of random reinforcement, eliminate emotion and momentum, and learn to be profitable. This is how you become a part of that 5% who are successful as traders.

By: Jenson Nuñez.


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