Essential Insights
- Critical Vulnerability Identified: Blockchain security firm SlowMist discovered a flaw in Four.Meme, a meme coin launchpad on Binance Smart Chain, allowing attackers to manipulate prices on PancakeSwap v3 and exploit token launches.
- Substantial Financial Loss: The exploitation led to attackers draining approximately $183,000 from the compromised liquidity pools before corrective measures were taken by Four.Meme.
- Immediate Response: In light of the attack, Four.Meme suspended token liquidity pools on PancakeSwap, assuring users that internal funds remain safe and that they are actively working to resolve the security issues.
- Rising Security Concerns: This incident reflects a broader trend of increasing security vulnerabilities and illicit activities in the Web3 space, corroborated by data showing significant financial losses due to hacking incidents.
BSC-Based Meme Coin LaunchPad Four.Meme Suffers $183K Exploit
Blockchain security firm SlowMist has identified a vulnerability at Four.Meme, a meme coin launchpad on the Binance Smart Chain (BSC). Attackers exploited this weakness by manipulating PancakeSwap v3 pools. This issue arose because Four.Meme lacked price verification checks. Consequently, it allowed malicious users to create pools with distorted prices right before token launches.
When new tokens migrate to PancakeSwap v3 and add liquidity, they automatically adopt these skewed prices. This mechanism enabled attackers to drain pool assets easily. PeckShield, another blockchain security company, reported that the incident caused losses of approximately $183,000.
Immediate Response from Four.Meme
In light of the attack, Four.Meme decided to suspend token liquidity pools on PancakeSwap. This action aims to protect user assets. The development team is actively working on a solution and plans to restore liquidity once they implement a fix. However, on-chain trading remains operational.
The official statement from Four.Meme reassured users, saying, “Rest assured, internal funds are SAFU and unaffected by this attack. We will continue to monitor the situation and provide timely updates to the community. Thank you for your understanding and support!”
Initially, Four.Meme gained attention due to the volatile performance of the Test (TST) token. User interest surged dramatically following this launch. Data from Dune Analytics shows the platform peaked with 11,473 unique addresses on February 9. Yet, just two days later, user engagement dropped significantly to 5,301 addresses.
Growing Security Concerns in the Industry
This attack exacerbates worries about the security of meme coin launchpads. It mirrors past incidents, such as last May’s flash loan attack on the Solana-based platform Pump.fun, which resulted in $2 million in losses.
The rise in cryptocurrency adoption parallels an increase in illicit activities targeting Web3. SlowMist’s January report stated that security incidents in this space reached $98.19 million in losses across 40 hacking attacks. Out of this, approximately $87.94 million in damages occurred, while only $1.47 million was recovered.
Major incidents include a $70 million hot wallet breach at the Singapore-based exchange Phemex on January 23, and a $7.2 million exploit of the P2P trading platform NoOnes’ Solana bridge on January 1.
As the crypto landscape evolves, so does the need for robust security measures. The Four.Meme incident highlights vulnerabilities that can jeopardize user trust. Industry leaders must stay vigilant to protect this emerging technology.
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Disclaimer
This content is for informational and entertainment purposes only and does not constitute financial or investment advice. Cryptocurrency is highly speculative and carries significant risk, including the potential loss of your entire investment. Do not make financial decisions based on this information. Consult a licensed financial advisor before investing. This site does not offer, sell, or advise on cryptocurrency, securities or other regulated financial products in compliance with SEC and applicable laws. Please do your own research and seek professional advise.
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