DeTrade.Fund rug pulls leaving with 1438 Ether
DeTrade Fund checked most boxes for users to perceive a legitimate DeFi project.
The company claimed that it intended to generate a continuous stream of income by exploiting market inefficiencies which threatened current market leaders.
It came across as a legitimate firm to many users - it was registered on Companies House and utilised all social media platforms, including LinkedIn. It even featured on Yahoo Finance, which gave the firm the publicity it needed, and the generated interest from investors in order to raise funds.
Not long after being featured on Yahoo Finance, the firm was sold.
The firm was sold in a private sale, which generated a total of 1438 Ether (under $800,000.00). Before long, the company, along with its website and social platforms, were shut down.
The community discussed whether the scam was in fact AI generated and potentially a deepfake, following the release of the CEO's promotion video on Twitter.
However this has been confirmed by an AI expert to not be the case.
Extropy's DemystiFi tool would warn of contract risks, even where a project appears to be genuine.
Extropy.io continues to develop DemystiFi - a tool which helps traders make better informed decisions when transacting with a contract. In this particular instance, the tool checks whether the owner of the contract is able to withdraw funds from the contract. This type of functionality creates the risk of user funds being stolen without any ability for the users to recover the amount. A warning is then generated before the transaction is sent, giving the user an opportunity to reconsider making a transfer.