HATCHDAO

DESCRIPTION OF EVENTS

"HatchDAO.Finance is one of the newest community led and governed projects on the Ethereum blockchain. Users will be able to create proposals, stake their HATCH tokens and farm through their sandbox infrastructure."

"Hatch DAO is a decentralized autonomous organization that aims to be the universal repository for researchers and developers to experiment with various decentralized consensus protocols in DAOs. With our sandbox, users will be able to vote, create proposals, or deploy their own DAOs utilizing our unique toolkits, and be rewarded in $HATCH for their contributions."

"Hatch DAO aims to be the universal repository for yield farmers, developers, and researchers to experiment with various decentralized consensus protocols within our sandbox. Users can stake, farm, vote, or create a proposal with the $HATCH token, and are rewarded for doing so. Utilizing the $HATCH token, individuals will be able to vote on or create proposals that will be used to determine the future of the project. This may range from changes in tokenomics all the way to a change in the governance protocol."

"With Hatch’s incentives built into the governance protocol, issues commonly seen in existing DAOs (such as lack of participation from users) are nonexistent. In the near future, Hatch DAO intends to offer a risk free sandbox environment for users to create and vote on proposals using Hatch’s native governance token ($HATCH)."

"HatchDAO has some really interesting tokenomics. The initial circulating supply of HATCH will be completely dependent on how many tokens get sold during the presale hosted on Bounce Finance. Every HATCH token that remains unsold after the presale’s end will be burned."

"HatchDAO had used SmartLock to lock their team tokens and TrustSwap had publicly announced this fact." "Congrats to @HatchDAO for giving their community the peace of mind that their team tokens are now locked and vested using TrustSwaps fully audited SmartLock Technology." "Although the team tokens were locked, the liquidity was not. The HatchDAO project pulled their liquidity, known as a ‘rug’."

"News of the Hatch DAO rug pull came late on Friday when the token was priced at around $1.80. Following what is becoming a tried and tested method, developers were able to mint the entire token supply of 2 million tokens and sold them for ETH on Uniswap, netting themselves nearly $46,500 and crashing the token price to just over $0.01 in the process." "In this case, because we are talking about a decentralized exchange (DEX), in practice the criminals used the platform to create a pool with tokens, and they made the pool grow, until they withdrew the liquidity by taking all the tokens and leaving a virtually unusable pool."

As "one user commented" “Running a scam is such hard work these days between running telegram, creating a lite paper, and making a website. Let Trustswap make your scamming job easier by providing the false sense of security your users needs for you to scam them properly.”

"TrustSwap's security was for the confidence of team token lockup. It doesn't provide any security for a minting potential, which is what happened with Hatch." "Many people assumed that team token locks prevented any/all scams. From this, it became clear that TrustSwap needed to alter our PR messaging and branding, and we have done exactly that."

"$HATCH and @GemSwap both did a rug pull today. They came across pretty polished but this industry is unforgiving. Service like $DGVC become more important now to safe guard against rug pulls! Will leave it to them to elaborate what they do to safeguard investors."

"Hatch DAO developers minted all the tokens in the smart contract late on Friday and sold out, performing what the community has come to call a ‘rug pull’, which has become something of an occupational hazard for Uniswap traders. DxSALE announced their airdrop of their own SALE tokens to HATCH victims shortly after the rug pull, with victims able to claim once the project has developed a dApp to manage the claims."

"We've received allegations that the team has abandoned the project. Please proceed with caution." "DxSALE, a platform that supports and promotes secure decentralized token sales, has offered an airdrop to victims of the recent exit scam by Hatch DAO."

An anonymous individual or team launched the HatchDAO token system which appeared to be an experimental DAO, and took advantage of the reputation of the TrustSwap service to gain the trust of more participants. TrustSwap, however, can't guarantee the security of a smart contract hot wallet, and claims that isn't their function. Despite the TrustSwap lock, HatchDAO still minted a large number of tokens, diluting the supply in a "rug pull" and stealing $47k from investors.

HOW COULD THIS HAVE BEEN PREVENTED?

There were no assets lost in this case. Any losses were caused because the security token value dropped.

The risk of rug pulls can be reduced by having funds managed by known individuals and stored in offline multi-signature wallets with greater accountability.

Check Our Framework For Safe Secure Exchange Platforms

@tjkrypto Twitter (Jul 25)
DxSALE to Offer Airdrop for Hatch Exit Scam Victims (Aug 22)
@dxsale Twitter (Aug 22)
@gMAKcrypto Twitter (Aug 22)
TrustSwap Promises Change After Hatch DAO Exit Scam (Aug 22)
Hatch DAO price, HATCH chart, market cap, and info | CoinGecko (Aug 22)
Hatch DAO price today, HATCH to USD live, marketcap and chart | CoinMarketCap (Aug 22)
Hatch DAO price today, HATCH to USD live, marketcap and chart | CoinMarketCap (Aug 22)
$0.01 | HatchDAO (HATCH) Token Tracker | Etherscan  (Aug 22)
HatchDAO – An Overview (Aug 22)
ProBit Exchange Lists Hatch DAO (HATCH) – ProBit Global Support (Aug 22)
HATCH - Hatch DAO Ticker Widget, Chart & Price Widget | Nomics (Aug 22)
거버넌스 토큰을 위한 해치 (HATCH) - 코박 (Aug 22)
Rugpulls How We Should Even Treat This Behaviour Whos To Blame (Aug 22)
@trustswap Twitter (Aug 26)
HatchDAO scammers pull liquidity as DeFi faces another setback • Blockcast.cc- News on Blockchain, DLT, Cryptocurrency (Aug 26)
Trustswap September Summary (Aug 26)
TrustSwap September 26 Ten-Minute Update - YouTube (Aug 26)
Attacks on exchanges, KuCoin and TrustSwap hit (Aug 26)
@multiverseJim Twitter (Aug 26)

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