⛔️ Base has rug pulls, scams and hacks

GM, this is Doodhwala, the crypto newsletter with crazy alpha that makes you go ‘HUBBA HUBBA, YESS YESS” 🤤

Read and find out yourself! 👇

Here’s what we cookin’ today:

• 😵‍💫 BASE Problems: Base has rug pulls, scams and hacks.

• ⛰️ Cliff Unlock: Arbitrum is set to unlock a billion tokens.

• 📈 Cheese and Charts: Optimism’s sus transactions.

• 🛠️ Resourcewala: Proof of stake design philosophy.

• 🍼 Doodhshots: PayPal's Crypto Pause

🤯 Base Gets Messy!

Yesterday was... well, let’s just call it interesting. 🙃

Everyone’s talking about Base.

And not always for the reasons you might want.

In the last 24 hours, Base saw some big, BIG money going bye-bye. 😮💸

Past 24 Hours on Base:

👾 Hacks and Rugs Tally: A whopping $1M!

🌀 SwirlLend: Rug-pulled for over $460,000!

🚀 RocketSwap: Hacked or rug pulled for around $865,000!

Before we proceed...

Wtf is a rug pull? 🤷

Basically, developers get you to trust a project, and then quickly take away your money.

Not funny, devs! 😢

1️⃣ About SwirlLend: A fancy name, huh?

A lending project on Ethereum's Layer 2 networks (Base and Linea).

They left with $460,000 of user money.

Some smart people, named PeckShield, looked into this.

They found out that SwirlLend

• Drained from Base: $290,000

• Drained from Linea: $170,000

And moved all this money to Ethereum.

The weirdest part? They've gone ghost on social media.

Their Twitter? Gone. Telegram? Poof. And the website? It’s like it never existed.

And, this wasn't even the first rug pull on Base!

Just before all this, there was a coin named BALD that suddenly lost a lot of its value.

Why? Cuz the person who made it took out a huge amount, 6,800 ETH (which is $12.5 million), from a place called the liquidity pool on LeetSwap.

And there was a controversy that that person was SBF. We wrote about it here.

I mean who else has so much free time to release a coin named BALD?

2️⃣ Now, LeetSwap

LeetSwap, a decentralized exchange on Coinbase's Layer 2 blockchain Base, suspended trading.

Why? A potential exploit and the BALD coin crash! 🚧🔐

Let's break it down:

LeetSwap detected a security vulnerability and suspected that their pool liquidity was compromised.

So, trading went on pause mode for further probing. 🚫🔍

PeckShield reported that around 340 ETH (that’s $630,000!) had been exploited from Base liquidity pairs. 😱

Bald memecoin's value went kaboom after its dev withdrew 6,800 ETH ($12.5 million) from LeetSwap’s liquidity pool.

3️⃣ RocketSwap’s Bad Day

They were also hacked that made ‘em lose about $865,000.

The good news? They fixed the problem.

The Bad news? Still waiting on that hacker's conscience to kick in and return the stash.

Hey man, if you're reading this, maybe return the stuff? Just a thought! 🥺

So, what’s the big lesson after reading all these scams? 🎓

New ecosystems like Base are all fun until they make you fall hard on your butt.

👨‍💻 Biggest Hackathon of 2023

Get ready for the #NeoAPACHackathon, a groundbreaking hackathon set to ignite Bangalore's tech scene! 🌟

• 🌐 Embark on a Web3 Journey of Innovation

• 🏆 Unleash Your Potential

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🎯 Why Attend?

• 🛠️ Workshops: Gain insights from thought leaders in the Web3 space.

• 💻 Hack with Purpose: Tackle real-world challenges and seize opportunities to create disruptive solutions.

• 🏆 Exceptional Prizes: Prize pool of $1,100,000.

• 👥 Network with like-minded hackers: Build connections that extend beyond the event and open doors to new collaborations.

🗓️ Mark Your Calendars:

August 26th - 27th 📍 Venue: RMZ ECOWORLD, Bangalore

See you at the #NeoAPACHackathon 🫡

⛰️ Arbitrum’s Cliff Unlock

Ever felt like you needed someone to unlock you? 🔓

Someone, to dive deep into your heart and release all the secrets within?💗

Well, we can’t help you with that. (Maybe a glass of milk? 🥛)

However, Arbitrum is set to make one of the biggest unlocks in the next year.

With over a billion new tokens set to enter the chain, what’s Arbitrum cooking?

And more importantly—

How will this affect Arbitrum token holders and the ecosystem? 🌎

Time to break the locks on what the hell Arbitrum is doing next year. 🔐

1️⃣ What’s an Unlock?

Token unlocks in crypto are basically those hidden packs of Doodh that every dealer has. 🤫

You know they got it in there, they’re just waiting for the right customer to come in to purchase it. 🥛

Simply put → Token unlocks refers to the release of new tokens into the market. 🪙

Token unlocks can happen in various ways - But usually, happen through a new sale or Airdrop.

These aren’t random btw—

They usually happen after the end of a lock-up period or vesting time. 🛡️

2️⃣ Arbitrum’s Cliff unlock.

Arbitrum is all set for its next biggest Cliff Unlock. ⛰️

What is this unlock you ask?

• On March 16th, 2024 - Arbitrum will unlock 1.11 billion ARB tokens, with a current worth of about $1.24 billion.

• After this release, on the 16th of every month, there will be more unlocks for the next 4 years.

• There will be a close to the existing supply of $ARB tokens added to the circulating supply, a.k.a, 2+ billion in circulation.

Why is it called a cliff unlock? 🤔

We have no clue. 💀

But we speculate it’s because of the huge drop from the top. 🤨

Here’s how the token unlocks will happen. 👇

3️⃣ Token effects of an unlock.

An unlock might sound great in terms of innovation. 💡

But that doesn't necessarily mean that the price of the token correlates to the innovation.

It's the classic case of money printing—

More money in circulation = Lower value for the currencies in hand. 📉

Same with ARB.

More circulating $ARB = More pressure on adoption to drive value for gains. 😵‍💫

At the end of the day—

It all depends on how well there is adoption of Arbitrum as an L2. 😮

None of those problems would matter if everyone loves it.

We still got everyone's lovely doodh, haven't we? 🥛

📈 Cheese and Charts: Optimism’s Sus Transactions

Optimism, the Layer 2 chain that’s been named after a personality trait that I’ll never have—

Optimism just hit a new all-time high in total ERC-4337 activity. 📈

No, my cat didn’t run over my keyboard. 🐱

However, this surge in activity is not because of something that just naturally happened—

Rather because of a certain Airdrop conducted by Cyber Connect - A Social network that helps you get on-chain friends.

Look at the dual benefit - You get a friend and an airdrop. 🤯

This new airdrop led users to create new on-chain user operations. 📏

Especially with 3 of the biggest infrastructure providers for Optimism —

👉 Pimlico.

👉 Alchemy.

👉 Biconomy.

Optimism is 🚀🚀🚀 right now, even flipping out Polygon as the most active ERC-4337 ecosystem. 😱

What do you guys think? Will Optimism be the next biggest L2 for ETH?

Hit reply and let us know what you think! 👇

🛠 Resourcewala: The PoS Design Philosophy

You've heard of PoW. You've been around the blockchain.

But, PoS (Proof of Stake) is where the real hype is building. And no, it's not just a trend, fam. 😌

We're all about that decentralized life, and PoS is coming through with a new vision.

Some call it the 'green alternative' (bye-bye, energy-hungry mining rigs!), but it's deeper than that. 🌱

Dive into today's resource to uncover:

• The essence of PoS? 🤔

• Why PoS might be the future? 🚀

• The philosophy behind its design. 🧘‍♂️

🍼 Doodhshots: PayPal's Crypto Pause

• 🌀 Gone with the Swirl: SwirlLend vanishes, leaving a $460K hole in Base and Linea's pockets. Where's the money, SwirlLend?

• 📒 Note-worthy Drama: Prosecutors get sneaky, eyeing Caroline Ellison’s personal notes as evidence against SBF. Gotcha by the notebook?

• 🎖️Coinbase Conquers: Coinbase secures the green light to roll out futures trading in the US. Is it time to ride the crypto wave with leverage?

• 💼 Big Bucks: After ditching Prime Trust, BitGo lands a cool $100M funding. Trust issues paying off!

• 🛑 PayPal's Pause: PayPal UK hits pause on Bitcoin buys, until 2024 comes. Hold that BTC thought, mate!

Smart Contract Contest -4

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How to Win? Here’s How ⬇

🤣 Milky Meme Of The Day

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That’s all for today folks! See ya tomorrow!

Yo! Our legal and financial advisors (aka our good ol’ conscience) have asked us to add this boring disclaimer. None of what you read here is financial advice. We aren’t here to get you to buy or sell crypto. We’re only here to tell you what’s up in crypto today and make you laugh. So, if you screwed up on a trade, that’s on you G. Stay safe in the markets.

Today’s edition was brought to you by Ritik Gupta and Sumanth

Edited by: Arvind Krishna and Aakash Athawasya