Mar 06, 2021

One More IDO Scam

When we published "Top IDO Scams and how to avoid them" one week ago, we missed one topic - risks connected with the IDO platform. In the last few days two of them had security issues, but one was very dissimilar from the other.

DuckDAO was subjected to an alleged DDoS attack, hampering multiple attemps to carry out a sale of the $LABS token. While spotty DuckDAO follow-up measures left many users frustrated, there was no report of any misappropriated tokens.

The PAID Network and its Ignition platform hack was different. The hacker used a smart contract vulnerability to mine and sell $3m of $PAID tokens and make off with the acquired Ethereum. While PAID promised to revert the network to the state before the hack, the people who lost Ethereum. The biggest issue is the vulnerability has been pointed out in January at https://lnkd.in/eGpAzpi and the PAID team did not address it.

Avoiding such third party vulnerabilities is tricky. You can prioritize platforms which already have conducted multiple IDOs and google for past security risks. The latter would be tough with PAID, as "paid" and "network" are common hard to google terms.

Or you can just avoid IDOs altogether and choose more established cryptocurrencies at coinerro.com.