Ede Finance’s Manipulative Price Tactics Exposed: A Warning to Crypto Investors

Key Points:

• DeFi project Ede Finance admits to manipulating prices, leading to a $580K exploit.
• The attacker claims to be a white hat, exposing the protocol’s backdoor that allowed core team members to liquidate trades.
• Ede Finance’s team agrees to remove the smart contract, offers a bounty and admits to making an ill-advised decision.

DeFi project Ede Finance recently made headlines after it was discovered that the protocol was exploited for around $580,000.

The team at Ede Finance admitted that they had made an ill-advised decision to manipulate the price. While they claim that their intention was to blacklist those who had previously exploited the system, they acknowledged that their actions were inappropriate. The team also stated that they did not aim to misappropriate user funds, as this would leave a traceable record.

According to security analysts PeckShield, the attacker who exploited the protocol claimed to be a white hat and was acting for good. The attacker said that they were trying to expose how the Arbitrum-based project worked. They claimed that the project’s core team had a backdoor that allowed them to liquidate any user’s trade on the supposedly decentralized protocol. The attacker said this activity involved using fake prices and claimed the intention was to steal user funds. This is a serious accusation that raises questions about the security of the platform.

The attacker also mentioned that there were additional vulnerabilities that could be exploited. PeckShield noted that while the project had been audited, the length of the audit was just three days. This raises concerns about the thoroughness of the audit and whether all potential vulnerabilities were identified.

While the team at Ede Finance has agreed to remove the smart contract that enables this behavior, the incident has already had a significant impact on the project’s native token. The token has fallen from $2.43 to $1.18 over the last 24 hours, down 51%. This is a significant drop that suggests investors are concerned about the security of the platform.

In an attempt to make amends, the team at Ede Finance has offered the exploiter 5% of the team’s token allocation, subject to vesting periods, for pointing out the other vulnerabilities. While this is a step in the right direction, it remains to be seen whether the team can restore investor confidence in the platform.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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