Inherent Risks In Crypto Space: GameFi Rug Pull And Accidently Closed Exchange

In 24 hours, the developers of the play-to-earn (P2E) GameFi project allegedly swindled its investors, and a Solana-powered exchange inadvertently went down. These incidents remind investors of the hazards inherent in the cryptocurrency field.

According to data from blockchain security company PeckShield, the GameFi project HeroCat seems to have scammed its investors. According to statistics from CoinGecko, the value of the game’s token, HeroCat Token (HCT), has decreased by more than 99.9% in the previous week.

According to PeckShield, the Binance Chain-based HCT performed a large sale and moved around USD 151,000 worth of the stablecoin BUSD. HeroCat has yet to provide an update on the present situation.

In the meantime, a development error has resulted in a Solana-based Defi project closing itself. OptiFi said they terminated the decentralised options exchange project during a scheduled update yesterday.

“We accidentally closed the OptiFi mainnet program, and it’s not recoverable,” the project’s official Twitter account stated, adding that the error led to the loss of USD 661,000 in cash, most of which was from team members.

OptiFi’s program has been closed by mistakes we made.

TL;DR

1. We accidentally closed the OptiFi mainnet program and it’s not recoverable
2. 661k USDC is locked in the PDAs, luckily 95% of the fund is from our team member
3. We will compensate for all users’ funds

— OptiFi (@OptifiLabs) August 29, 2022

The team stated in a post-mortem that they intended to upgrade the protocol on August 29. Still, it halted the operation after the deployment took longer than anticipated owing to network congestion. They then observed that a second “buffer” account had been formed and that OptiFi had moved slightly more than SOL 17,2 (USD 558) tokens to it.

To recoup these assets, the group tried to terminate the OptiFi program. The plan was successful, but the program was shut down permanently instead of temporarily.

“We will return all users’ deposits and settle all user positions manually according to PythNetwork oracle at 8 AM UTC on September 2,” the team said.