An Investor Lost $470,000 On This DeFi Altcoin Project!

A crypto investor says he lost $470,000 on a dog-inspired DeFi altcoin project. In an interview, Brian Nguyen says he “wake up unexpectedly” on Friday and lost about $470,000 invested in a DeFi altcoin project. “It is quite painful,” adds Brian Nguyen. For details of the news cryptocoin.com You should keep reading.

There are different rumors about what happened to the DeFi altcoin project that Brian Nguyen invested in

Brian Nguyen admits that he has not researched the project extensively before investing and says, “In crypto, we tend to have a ‘buy first, research later’ mentality.” What happened to the DeFi altcoin project that Brian Nguyen invested in is currently unclear. The project, called AnubisDAO, appears to have raised $60 million with the sale of its token ANKH.

DAO is a decentralized autonomous organization working on Blockchain technology. Cooper Turley, an investor and founder of several popular DAOs, previously explained, “Simply put, a DAO is an internet community with a shared bank account.” Anubis has also identified itself as a DAO, the details and purpose of the project are unclear.

According to Brian Nguyen and others who said they had invested in AnubisDAO, all $60 million in funds were transferred and lost. Some think it could be a phishing attack, where attackers usually send emails with links requesting the owner’s private keys to be entered. Others believe it could be “carpet pulling,” a common type of crypto scam where developers leave a project and leave with funds from investors. However, there is currently no concrete evidence of this.

“I was impressed by a popular crypto influencer named 0xSisyphus whom I respect”

CNBC says AnubisDAO has yet to respond to a request for comment. The token sale started on Thursday and ended on Friday. Meanwhile, Brian Nguyen made a six-digit Ethereum investment. Meanwhile, CNBC notes that it has not been able to independently verify that the investment is associated with Brian Nguyen’s name.

Despite not being involved in the development of the project and having little knowledge of it, Brian Nguyen says that AnubisDAO appeals to him because it markets itself similarly to other dog-inspired cryptocurrencies like Dogecoin (DOGE) or Shiba Inu (SHIB), which have been gaining in popularity recently. .

Brian Nguyen explains that the fact that the sale was made on Copper Launch, a well-known crowdfunding mechanism, also adds some legitimacy, and says that AnubisDAO is backed by a popular crypto influencer named 0xSisyphus, whom he respects:

So, I had some faith in the purchase.

It seems that 0xSisyphus tweeted about AnubisDAO and about the token sale prior to this event. However, 0xSisyphus tweeted on Friday that the “account was clearly hacked”. This suggests that 0xSisyphus has no role in the AnubisDAO case. At the same time, 0xSisyphus tweeted that he has since placed a reward of 1,000 ETH (or about $4 million) to help find lost funds. However, CNBC says 0xSisyphus did not immediately respond to a request for comment.

DeFi altcoin project AnubisDAO made a statement on Twitter

After people started tweeting on Reddit and talking about losing their money, AnubisDAO tweeted that the incident was the result of an “unexpected bug in Copper Lunch.”

A note to all our early supporters: An unforeseen bug with Copper caused a minor delay as the team rushed to fix the issue. Fixing the bug was extremely important and therefore top priority and delayed our plans to announce the official LBP.

In response, Copper Launch shared the following statement, quoting the AnubisDAO tweet:

This “error” referred to an 8-minute period between deploying the Coper repository and activating transactions. Copper requires transactions to be enabled via an additional tx, and the team missed that part while going live. All traders are disabled during this period.

Copper Launch said it wasn’t compromised, “but it looks like the Anubis team has seized the admin keys,” or a series of letters and numbers similar to a password used to unlock access to a holder’s cryptocurrency. Copper Launch tweeted that any organization can use the crowdfunding mechanism and stated that a launch on its platform is not an endorsement of the project. Additionally, Copper Launch made the following statement:

However, even great projects and teams have mistakes. Internet money is not always easy. We wish the AnubisDAO team and community all the best.

What should be considered when investing in the crypto market?

Unfortunately, it’s not uncommon to lose money on such crypto investments. If this is a scam or phishing attack, it seems highly unlikely, if not impossible, that the funds will be returned.

This is partly why experts often view cryptocurrency as a risky, volatile and speculative investment. That’s why when it comes to investing in decentralized finance (DeFi), apps or tokens, experts recommend investing only as much as you can afford to lose. CoinShares chief strategy officer Meltem Demirors previously commented:

I think every DeFi protocol and every DeFi altcoin project has a different level of risk and a different level of reward. However, it is important to understand why the reward is high. Because the risk is higher. The reason we see high yields is that there is a risk here.

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