Cryptocurrencies

Decentralized Finance (DeFi) experiences its first Exit Scam – Cryptocurrencies

Asuka, the last SCAM of DeFi

The cryptosphere: fertile ground for scams? RIP the hopes of a blockchain capable of stemming all fraud. Scammers will always find the loophole as long as a system is based at least on a smart contract. Decentralized finance (DeFi) is no longer free from fraud; exit scammers have been able to penetrate a sensitive sector, where players are nevertheless supposed to compete and have a better image than banks and financial institutions with centralized practices.


Asuka: Now is the time to get out!

The decentralized finance has experienced massive growth since the development of yield farming activities, with the record interest rates associated with it.

All successes unfortunately attract hyenas and vultures and therefore come with their share scams ; the latest is the exit-scam made by the creator of Asuka token, Jongchang Jang, 2 days after the launch of the project on August 3, 2020.

decentralized finance DeFi exit-scam

Asuka is a fork of a well-known project from the Challenge, Yearn Finance (YFI), and is inspired by the success of the fork YFII with the Chinese community; some investors nicknamed Asuka, the Dogecoin (DOGE) of DeFi.

Project details reveal that the amount of tokens Asuka in circulation, would amount to 21,000 units: their initial price was set at 20 dollars and had managed to reach 1,600 dollars thanks to the conjunction of strong demand and limited supply.

After the scam was revealed, the course ofAsuka collapsed to $ 18, within hours.

All this for a meager booty?

One of the managers MakerDAO, Doo Wan Nam, revealed on Twitter that Jang could only have escaped with loot estimated at between $ 30,000 and $ 60,000: he would have lost the proprietary key to access the liquidity pool which would have been valued at $ 8 million – we will not shed tears over our misadventures either.

Some sources claim that Binance was aware of the situation and was working with the Korean authorities to freeze project funds.

Most likely referring to this exit-scam, the founder of Yearn Finance, Andre cronje, quipped in a tweet, that a simple copy and paste was just a waste of time and didn’t add anything new to the community.

Pub

New challenge for DeFi (you will have noticed the pun I hope!): To preserve the image of the sector by actively fighting against scammers. Some prefer to speculate, others to rip off their neighbor: to each their own vocation in the cryptosphere!

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