According to PeckShield, the DataDAO project presents itself as a data marketplace platform with a backdoor to steal users’ funds after approval. The crypto market is currently witnessing an escalating crypto scam that is preying on the uninformed as the market continues to grow in adoption.

One tweets A January 31 alert from PeckShield labeled the project a scam and pointed to suspicious code.

#Fraud PeckShield detected #DataDao https://t.co/xMn75mmMS9 has a backdoor to steal user funds with permits. Stay *AWAY* from it! #phantom pic.twitter.com/JiYqIP7xX7

— PeckShieldAlert (@PeckShieldAlert) January 31, 2022

DataDAO suspended

DataDAO is one of the projects on the list of scams that are constantly increasing in the crypto market, especially in the DeFi market. DataDAO itself has not yet commented on the warning, nor has there been any discussion in the community.

DataDAO is a platform trying to build a data marketplace where users who share data are rewarded. They set their own mission:

“Assembling sets of data into a meaningful and valuable dataset whose value is greater than the sum of its parts.”

With very few Twitter followers and a clearly unfinished website, the project looks unprofessional. There are currently no reports to suggest that any funds have been stolen.

Founded in 2018, PeckShield is a blockchain security company with team members from companies such as Microsoft, Intel, and Alibaba. It is ranked in the top 3 of the Ethereum Bounty Program and has established partnerships with several companies in the blockchain space.

PeckShield also offers security tools and solutions in addition to the services of DAppTotal and CoinHolmes. A few weeks ago, the company discovered 50 tokens with traces of fraud on Binance Smart Chain.

Cheating will be rampant in 2022

Heading into 2022, the crypto market is still full of scams statistical. .

Members of NASAA USA suspect Crypto fraud will be the biggest threat in 2022. As evidenced by a bitcoin user who lost $1.1 million in a scam earlier this year, a thief posed as MicroStrategy CEO Michael Saylor. The NFT isn’t immune to theft either, as a Bored Ape NFT collector loses nearly $1 million to scammers on Discord.

Due to the serious consequences of these incidents, teams are working on security solutions to prevent further losses. A key step is looking at smart contracts, and they’re also looking at decentralized insurance solutions.

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