$50 000+ USD
DESCRIPTION OF EVENTS
"Up1 - Defi TVL Synthetic Elastic Index Fund - A brand new asset class that will revolutionize how individuals invest in digital assets."
"Synthetic is the term given to financial instruments that are engineered to simulate other instruments while altering key characteristics. Often synthetics will offer investors tailored cash flow patterns, maturities, risk profiles and so on. Synthetic products are structured to suit the needs of the investor. A synthetic is an investment that is meant to imitate another investment. Synthetic products are custom designed investments that are created for large investors."
"A price-elastic token is one where the project’s total token supply is not fixed, but instead automatically adjusts on a routine basis. These token supply adjustments are called rebases. When UP1 price is greater than the Total Value Locked in DEFI * 0.1^11), more $T will be minted. When UP1 price is lesser than the Total Value Locked in DEFI * 0.1^11), the $T in everyone's wallets will be reduced. Positive Rebase creates new supply, decreasing scarcity and driving price down its target."
"An Elastic synthetic index fund like instrument of Defi TVL (Acting as per the underlying assets.)" "The world’s first tokenized derivative of its kind (Traders & Institutions can speculate an untouched assets)."
"I can't even "fat-finger" click confirm on some jewel such as up1(.)org, that will dynamically ask for inf-approve on *the most valuable ERC20 you have*."
"I fell for this one."
"An early Ethereum and DeFi investor who wishes to remain anonymous told Cointelegraph that they fell victim to a rug pull on Dec. 19, 2021. The anonymous source shared that the project is called “up1.network,” noting that many early Ethereum investors were discussing Up1 in a Discord chat group."
“People I trusted were mentioning the project so I checked it out. I thought it was strange to see Up1 giving away airdrops, but thought it could have been affiliated with a DeFi token I had. I then connected my MetaMask wallet and clicked on ‘get airdrop’ but kept getting an error message. I did this three times, which gave the project access to my account.”
"Unfortunately, once Up1 gained access to their account, three DeFi tokens worth $50,000 were instantly taken. “I revoked access after the fact on Etherscan so they couldn’t steal any more tokens,” they mentioned. The Ethereum investor then checked the DeFi platform Zerion where they saw the notifications that the DeFi tokens had left their wallet."
"Scams are evolving.. stay safe."
Up1 Network claimed to be a synthetic elastic index fund, and offer new innovation to revolutionize how investors invested. The website was filled with extensive details and background about synthetic tokens and even featured some tokenomic algorithms. There was a supposed team with biographies, although no human faces were used. Users of the website were prompted to get their free airdrop.
Instead of a free airdrop, the website would request them to grant an infinite approval of the highest-value token in their wallet. When approving that transaction, the funds would be quickly stolen and laundered. At least $50k was taken from one victim, although there appear to have been several. There is no indication that any of the funds were recovered.
HOW COULD THIS HAVE BEEN PREVENTED?
Users can protect themselves by always triple checking every transaction. A good strategy to massively reduce potential losses is to keep most funds stored offline in one or more separate wallet(s) and only have a small balance based on what you are actively using in your present wallet.
The industry as a whole could protect itself by having a simplified framework for all platforms, which would allow investors to look up which platforms are registered easily. Presently, far too many legitimate platforms are operating outside the law and offshore due to the regulatory complexity and uncertainty, which brings investors to be accustomed to sending their funds around the world and not performing any diligence on which platform.
Once losses are obtained, the industry has no standard program of recovery. We have recommended the establishment of an insurance fund which could have funds available to assist victims and increase the rate of reporting so perpetrators could more easily be brought to justice.
@amanusk_ Twitter (Jun 26)
$P – Defi TVL – Elastic Synthetic Index Fund (Jul 22)
@heminvaidya Twitter (Jul 22)
Beware of sophisticated scams and rug pulls, as thugs target crypto users — Blockchair News (Jul 22)
https://etherscan.io/address/0xc28a580acc42294787f44cffbaa788eaa4958056 (Jul 22)
https://etherscan.io/tx/0xd56ba7c3c0ae82dbc36e3d8e8d600f8d5cb9f3575347e85ef846bb29d97c9ed6 (Jul 22)