MoonSafe Code Audit Exhibits Suspicious Anomalies, Rip-off Confirmed?


DeFi liquidity venture MoonSafe is caught in a sea of controversy at current. Not solely do distinguished crypto personalities allege the venture is a rip-off, however an evaluation of its code by Obelisk reveals deceptive claims about how liquidity supplier (LP) tokens are secured.

LP tokens are minted and despatched to the liquidity supplier’s handle as proof of offering liquidity. They’ve utility and worth and are sometimes used to yield farm and due to this fact multiply positive aspects from the preliminary act of offering liquidity. Nonetheless, in line with analysis by Obelisk, MoonSafe LP tokens are accessible by the founders.

“One of many foremost points with the entire venture is that whereas customers are result in consider that the Liquidity Supplier tokens (basically the receipt for having offered liquidity) are in reality locked and inaccessible from the founders, the precise reverse occurs.”

Suspicions Over MoonSafe Heighten

MoonSafe positive aspects since its inception hit 11,500% at its peak. However a collection of occasions have since tanked its value. The first concern pertains to allegations that the venture is a rug pull, solely to line the founders’ pockets.

SafeMoon price chart

Supply: MOONSAFEUSD on coingecko.com

A whitepaper evaluate highlights a number of inconsistencies, corresponding to obscure statements on the lock and burn course of and different crimson flags, together with a roadmap that doesn’t transcend 2021.

“SafeMoon was marketed as “anti-rugpull” and as having its liquidity locked for 4 years… And to this present day the web site of the venture stays very ambiguous as to how the locks and burns occur.”

Obelisk audited the MoonSafe code, which revealed extra causes to be cautious. They allege charges for offering liquidity are directed to a pockets managed by the developer. To handle this, Obelisk recommends included an extra step to divert these funds to a wise contract with predefined community-centric features.

“To mitigate dangers, SafeMoon possession may very well be transferred to a wise contract that may very well be programmed to deal with funds securely solely utilizing predefined features. This could be a very essential issue when it comes to safety and trustlessness.”

Of extra vital concern is the extent of management held by the devs when it comes to setting the proportion quantity of charges of every transaction. That means, it’s attainable to set the charges they obtain, from customers including liquidity, to 100%.

Obelisk states that their code evaluate exhibits a situation conducive to a rug pull.

“That is significantly worrisome because the builders might basically pull out the liquidity and market promote towards another liquidity supplier with the cash that they’d obtained from reflection charges from customers. That is the proper circumstances to tug the rug beneath the customers ft.”

CEO Describes Final Night time’s AMA as a “Shambles”

In an try to deal with neighborhood issues, MoonSafe builders hosted an AMA on Twitch final evening. The video has since been deleted, and by the seems to be of it, so has the corporate’s Twitch channel.

Social media feedback describe it as a farce. One Reddit consumer stated the agency failed to deal with any of the issues neighborhood members have.

“So the builders simply held AMA the place nothing was answered besides they’d a rapper there who talked about Porsches.”

CEO John Karony described the AMA as a shambles and opted to go stay himself. Nevertheless it’s unclear the place that occasion occurred, or even when it occurred.





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