I hope you are all well and having excellent day, welcome to CryptoGod-1’s blog on all things crypto. The Base blockchain, created by Coinbase, has been open to the public as since 12 p.m. ET on Wednesday the 9th of August. However, a potential scam worth around $6.4 million by Magnate Finance has been revealed by blockchain analyst ZachXBT.
Magnate Finance
The blockchain company Magnate Finance, which operates as a lending/borrowing platform with revenue sharing tokenomics on Layer2 Networks, has deleted its Telegram group along with taking its website offline earlier on Friday the 25th of August 2023. It has raised fears of another exit scam, with $6.4 million in Total Locked Value on the platform. Magnate has ties with with other financial exit scams and according to blockchain analyst ZachXBT that they a deployers address which is directly linked to the Solfire $4.8M exit scam. He also revealed they have an on-chain tie with Kokomo Finance exit scam. Their token MAG has dropped around 88% in value since the website went offline, and it is down about 90.6% in the last 24 hours.
ZachXBT had made his warning on X (formerly Twitter) about the potential of an exit scam, and soon after responded to him with “We stick to the plan? 50-50?” and changed their X bio to “Contract breached by Zach”. Soon after they deleted their entire X account. The positive part of the news was that several users managed to get their funds out after Zach warned about the potential exit scam, however not all. PeckShield then confirmed that the developer of the lending protocol on Base modified the provider of the price oracle and removed all the assets.
Scams are rife in the industry these days and its clear the Base blockchain will be no different. $207 million have been lost as the result of bridge exploits over the last half a year , while exit scams and hacks have amounted to $656 million lost during the first half of 2023.
Have a great day.
CryptoGod-1.
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