Simplify is caught in a code vulnerability scandal. Has the ERC314 social experiment failed?
According to data from the official website, the token SIMP rose to a maximum of $53.36 after the market opened. As of the time of writing, the current price is $9.56, which has dropped 80% from its high point.
Yesterday, Simplify, an ERC-314 standard project on the Ethereum mainnet, aroused heated discussion on social media after being promoted by many KOLs. According to information on its official website, the transactions of the ERC-314 project Simplify are very simple. In addition to the transactions on the official website, it can complete the purchase of $Simp by directly transferring ETH to the address, and transfer $Simp to complete the sale.
This means that Simplify avoids all transaction infrastructure on the Ethereum network, including DEX, and users only need to make a transfer from their wallet to complete the transaction.
In order to allow community members to better understand Simplifys mechanism innovation, KOL Paulwei used a vivid empty soap box example to explain.
Code vulnerability controversy
Just after everyone discovered that the ERC-314 standard project Simplify indeed saved gas fees, $Simp went all the way up to $53.36. That was until several community members said there was a vulnerability in Simplify’s code.
After the comments of several community members were fermented, they caused panic in the community. Simplifys official social media also stated that this was a social experiment, and the price of $Simp dropped all the way to around $9.
But a few hours later, community members from Peking University@yicunhui 2 Said: The opening x*y and the current x*y, we can find that there is definitely no problem in this aspect. After many scientists checked and tweeted, it was confirmed that there was indeed no problem on this issue. Community sentiment began to turn around and prices also rebounded.
But as the ERC-314 standard project Simplify itself said, at present it is just a social experiment, a new ERC standard that was born not long ago, and may still have some potential risks. Compared with yesterday, Simplifys popularity has dropped a lot, and the currency price has remained around $9.
Finally, for the community, while paying attention to innovation, it should still be cautious about potential risks. After all, in this rapidly iterative market, there are too many projects that lose popularity and then become popular.
