Meme Black Swan: On-chain exchange DEXX stolen

Source: Daoshuo Blockchain

The most sensational thing in the circle in the past two days is probably the DEXX incident.

I don’t know much about this platform. I just saw many people protecting their rights on Twitter and checked relevant reports online and learned about the gameplay of this platform.

This is a platform similar to a robot trading platform, and the main object of platform trading is various meme coins.The platform uses robots to allow users to automatically trade tokens for profit.

Although I have not participated in this platform, I have tried similar gameplay – I participated in a trading robot on TON.

When I click on this robot, it prompts me to give it the private key of the account, and it can help me automatically trade.

As soon as I saw that it asked me to give it a private key, I immediately turned off the robot and no longer focused on any such applications.

The reason I turned it off is simple: I don’t participate in any application that asks me to hand over my private key, no matter how tempting it boasts.

According to current information compared by multiple parties, this incident caused the stolen assets of users to reach tens of millions or even hundreds of millions of dollars.

Although the truth of the incident is still under further investigation, more and more details that have been exposed can still show us the problems reflected by the incident:

Security issues caused by centralized hosting of private keys.

The issue of crypto asset security is almost a common topic in the ecosystem.Such security incidents basically occur at least one year.

The basic reason for the accident is nothing more than the following three points:

– High income as bait

– User exposes private keys

– Poor management of private keys.

Among many security incidents, their manifestations will not be the same, and they will appear in new ways every time, but if you look closely, they will be the same in essence.

In the DEXX incident, the recommenders participating in the recommendation can receive high commissions, the platform’s promotion benefits are very attractive, and the players participating in the platform must give their own private keys, and the platform’s management of their private keys is centralized.

All of these problems arise.

For such applications, there will always be players who have this kind of luck mentality:

I only put a little money in and play, and then I will stop after making money, and I will be able to escape safely.

This idea is beautiful, but when it is really practical, most people can’t stop it.

Even if you start with small funds, once you get high returns, you won’t think of stopping, let alone getting out of your way.At this time, people’s hearts will swell and they will only want to use more money to gain greater benefits. All kinds of precautions set in their minds in advance will be lifted one by one.

Therefore, once something happens in the end, the user will definitely lose a huge amount.

In this incident, the amount of losses lost by users who participated in the online rights protection and exposure of losses was not small.

Many users also mentioned that they had reported to the public security organs and filed a case.

In our country, transactions related to crypto assets are very sensitive issues, and they are a relatively gray area in the law.In this case, it is hard to say how the public security organs will handle such cases, and even if they are handled, they may cause other troubles.

So for retail investors like us, if we carry out various activities in this field, we are the only one who can truly protect our own interests.

We must attach great importance to the security of crypto assets ourselves, rather than delegating security to others.

Besides, isn’t the original intention of blockchain technology the birth of is to hope that every user can control the private key and firmly grasp their own assets?

I think similar events will happen in the future, and every time such an event occurs, users will suffer losses.If it is understandable that users who have entered this field are unlucky due to lack of experience, old users who have been working in this field for several years have been caught, they must deeply review themselves.

I always think that security in crypto ecosystems is always the first priority.Any attractive interest is nothing more than the moon in the water and the flower in the mirror when safety is not guaranteed.

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