On April 23, multiple Twitter KOLs tweeted that due to a code error in the AkuDreams smart contract, 11,539 ETHs worth $34 million were permanently locked, and neither individual user or development teams could withdraw them. Immediately, the market was hotly debated.
Not long ago, AkuDreams officially issued an official document acknowledging the problem. At the same time, he also stated that he is still investigating the real reason for the locked funds.
Affected by this, Aku’s sales volume and sales have been seriously affected. Taking opensea as an example, before April 23rd, Aku’s sales and sales volume had been showing a steady development trend, and today it showed a bankruptcy-style plummet.
However, in just a few hours, we saw it rise and collapse. Many netizens jokingly asserted that the Aku pass card has been reset to zero.
So, what exactly is going on here?
This matter also needs to start with the public offering of Akutars yesterday. At about 2:00 p.m. EST on April 22, the NFT project Akutars that consists of 5,500 random Akutars will be minted through Dutch auctions; at the same time, users with akutar pass can also participate in the public sale, and enjoy a certain discount according to the number of passes they have. One pass can have a final transaction price discount of 0.5E.
Now the wealth effect of the NFT market is becoming more and more obvious. The benefits brought by a potential NFT are enough to surprise people, especially when the current market is extremely unstable, more and more users are beginning to turn to the NFT market., because of seeing an enticing wealth effect.
Therefore, in the first time of the public offering, a large number of users actively participated, including some technical white hats. Interestingly, a white hat found a loophole in the process of participating, so he actively contacted the project team after Ethereum was locked. After communication, the logic of malicious consumption of gas was finally lifted so that the refund can continue smoothly.
Of course, we don’t know whether the project party will carry out a reasonable check and proofreading of the parameters of the smart contract again after the vulnerability is discovered.
At the time of writing this article, SlowMist Technology also issued a brief analysis of the Akutars fund locking incident. He believes that the original intention of the project party is to ensure that all users can withdraw money after completing the refund, but the claim project funds function requires that the refund progress refund number must be greater than or equal to total bids, but in fact the refund progress is calculated based on the total number of bidders, that is, all after the refund is completed, the refund progress will just be equal to the bid index. This is the case where refund progress will never be greater than total bids. Eventually, the 11,539.5 ETH in the contract could never be withdrawn.
In layman’s terms, when the refund is made, the parameter settings of the project party are not written properly, resulting in the remaining money after the first wave of refund is locked in the contract and cannot be withdrawn.
Maybe the project party had good intentions, but unfortunately the technology was not up to standard, and a prudent test and audit was not carried out. As a result, a large number of users’ assets were locked, which is not a bloody lesson.
Currently, Aku has not made any reply on Twitter. Coinbetter will continue to follow up on this matter.
Although 11,539 ETHs were locked due to contract issues this time, some users still expressed their support for the project. Users believe that for a year, the project team has made a series of narrative IP NFTs around the image of Aku, with a total of 10 chapters, and each chapter represents a small story. And Akutar is the latest PFP series, among which Billionaire Boys Club, Puma, Planes and so on make people shine.
Secondly, Akutars adopted a more innovative gameplay, made ten series of IP in the form of animated videos in one year, and finally released PFP, most of which were airdropped to the holders of the previous projects. Therefore, Akutars also has a relatively stable community environment, and the consensus of the holders is also strong.
Having said that, the number of security incidents caused by smart contract vulnerabilities is too numerous to count. Coinbetter believes that smart contract codes need to undergo strict security verification and inspection before they can be allowed to be published. More importantly, smart contract owners should not have absolute rights and must limit smart contract owners through community governance (governance). And ensure that it will not use its own advantages for malicious operations.
Coinbetter also wants to remind everyone that NFT is still a high-risk industry, and users themselves need to do a good job of risk control.
The market is crazy, but it’s happening…