Heco has many local dog routines, be careful

The most indispensable thing in the currency circle is jokes

Uncle Jian wrote an article about Heco’s mining before.

This week, on Heco (Huobi Ecological Chain), frequent project accidents have brought huge losses to investors.

The market rebounded in the past two days, and almost all sectors were rising, but the Heco sector kept falling.

Many people have already called the Huobi ecology the crematorium ecology.

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Earth dog, earth dog, actually describes those mining projects with relatively high risks.

They either have a low interface, or are self-promotional, or have no audit or endorsement, in short, they are the kind that can divide you every minute without discussing.

Next, let's take a look at the routines of the earth dogs and how these earth dogs "bite" investors.

▌HBO: The project party smashed the plate

The currency circle is really exciting.

Last week, some readers left a message to Uncle Jian, saying that a friend around him bought HBO, and the profit was hundreds of times.

As a result, HBO dropped directly from more than 100 dollars to 2 dollars this week, and it almost fell to zero.

This is not the oracle project in the publicity, it is clearly a harvester.

It only takes a few days for a "star" project to fall...

Why did the currency price suddenly plummet? What happened to this project?

From the blockchain browser, it can be found that on March 1, an address of the project team directly recharged 5 million HBO into the HBO/USDT LP pool, which abruptly lowered the price of HBO to 20% of the original price.

The plunge of HBO not only brought direct losses to HBO holders, but also brought huge impermanent losses to those who use HBO for liquidity mining.

But looking back, the operation of the project party is simply a big reward for confusing.

Because the project party recharges directly to the liquidity pool, this means that they have not taken USDT from the pool, that is, they have not profited from it.

To put it simply, it can be understood that the project party directly sent 5 million HBOs to the market.

What is the project plan?

People don't plan anything, they officially announced that the developer made a mistake.

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▌BOOK: The project party secretly issued more

BOOK is a project that cannot be prostituted for free. There is no pool for single-currency mining (you cannot simply deposit BTC, ETH, etc. for mining).

If you want to mine, you must buy BOOK, and then use BOOK and other currencies to do liquidity mining.

Such a rule is obviously conducive to attracting BOOK buyers, thereby raising the price of BOOK.

At the beginning of the mine on the 27th of this project, BOOK once soared to 30 US dollars, but fell directly below 0.1 US dollars on March 1.

It fell 99% in two days, which is no different from returning to zero.

Why is this so?

It turns out that the project party has been secretly issuing more BOOKs, entering the pool to mine, and then selling them non-stop.

Then another question arises, BOOK claims to be audited by "Zero Hour Technology". Since the code audit is safe, how can it issue more?

It turned out that what was audited was a set of code released by the project party on Github, and another set of code was finally deployed by the project party on the chain.

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▌AVAT: There are many ways to fake P pictures

This project is very twists and turns.

At the beginning, it was said that the project has passed the chain security audit, and everyone can mine with confidence.

A day later, it was said that the chain security audit was not rigorous, and that there were no problems with the project, and then the launch would be postponed.

AVAT's approach is also ridiculous. Code development is originally a problem of the project party, but the statement on the official website completely pushes the responsibility to the audit.

This is like copying homework by mistake, and then pushing it to the teacher?

Well, the code dish product cannot be launched. If it is a problem of ability (stupid), then using a fake avatar for the P picture is a moral problem (bad).

In the white paper of AVAT, the profile picture of the founder was picked up from the Internet, and he was a real estate agency.

After being discovered, the project party deleted the team information in the white paper overnight, which is really embarrassing.

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There are so many dogs on Heco, is it Huobi’s problem?

First of all, we need to distinguish between the public chain and the projects on the public chain. Their relationship is like a road and a car on the road.

All cars can run on this road without a permit. And if the car overturns above, it is difficult to hold Malu responsible in theory.

As for why there are so many dirt dogs on Heco?

In the final analysis, it is because Heco is still in the early stages of development.

In the reckless stage, there is a lot of traffic, and users have not been educated in place, so it is easy to fall into the pit, so the local dogs are even more rampant.

Looking back on last year, many people lamented:

• Why are there so many dirt dogs on BSC?

• Why are there so many dogs on Ethereum?

Since there are so many DeFi accidents, what should we do?

The safest strategy, of course, is not to touch it, as long as you don't operate, you won't lose money.

As the phrase poisonous chicken soup said:

"People will never lose money beyond what they know. For those who don't understand DeFi, they will never be included in the list of mining disasters."

But Uncle Jian always regards DeFi mining as a low-risk method, and I have summarized several correct postures for safe mining:

▌1. Don’t punch your head

Top mines often have very high returns, but I do not recommend that you rush into any top mines without thinking.

For example, it took Meerkat Finance on the BSC chain yesterday afternoon only 3 hours from going online to running, but it made more than 30 million dollars, equivalent to more than 200 million yuan.

The fact that a new mine without audit or endorsement can attract so much money really shows that the big guys are rushing too hard.

▌2. Try to use one currency for free

The risk of "digging, selling and withdrawing" a single currency for free is always small.

But if you use mining coins to do LP (that is, use the tokens issued by the project + another currency for liquidity mining), most of them have to go out on their knees.

For example, the few local dogs on Heco I introduced earlier all caused huge losses to investors because of the sharp drop in the price of the mining coins themselves. If it is pure white whoring, it is actually just a matter of earning more and earning less.

▌3. Fund dispersion

The funds for mining must be part of your total currency assets, not all of them.

In addition, the mining part must also do a good job in the decentralization of chains and projects. For example, Uncle Jian’s mining funds will be dispersed in different projects of ETH, BSC and Heco.

▌4. Avoid excessive wallet authorization

When digging any mine, there will be an operation called "authorization approve".

Most of the authorized pages are in English, and people often don't read them carefully, but there are actually security risks in excessive authorization.

For example, sometimes you think that you only authorized a certain transaction, but in fact you authorized a certain DeFi project to permanently access a certain type of token.

Another example is that some DeFi contracts are of the Upgradable Proxy type, which means that the deployed contracts can be upgraded at any time to make any changes. You have authorized it before, so after changing the contract, it can directly transfer the funds in your wallet.

So how do you prevent over-authorization?

Here we provide you with tools on different chains to deauthorize.

ETH：etherscan.io/tokenapprovalchecker

BSC：bscscan.com/tokenapprovalchecker

Heco：cointool.catxs.com/heco/hecoApprove

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Regarding DeFi mining, Uncle Jian believes that a few mouse droppings should not spoil a pot of porridge.

In other words, don’t deny the entire DeFi ecosystem and mining because of a few local dog projects.

But at the same time, I also emphasize risk risk risk again.

I have said before: The upsurge of ICO in the last wave of bull market has been replaced by DeFi. The risks during the ICO period are very intuitive, nothing more than running away or tokens returning to zero. But there are more pitfalls in DeFi, so be more careful.

In the currency circle, we should always put asset safety first.

After all, opportunity is not a scarce commodity, but capital is.