EtherWrapped is a project that aims to provide an annual summary of users’ non-fungible token (NFT) activities. It was launched more than eight hours ago and has become a big fan in the crypto community.

The website details a plan to airdrop YEAR tokens based on quantitative participation statistics in the user’s MetaMask wallet, or more simply, their transaction volume, transaction volume, and gas fee data.

After verification on EtherScan, some well-respected developers and engineering experts in the field evaluated the coding of smart contracts. Meows.eth pointed out that these parties saw the existence of “a feature called _burnMechanism”, but concluded that this was just a harmless mistake made by seemingly amateur creators.

We noticed the existence of a function called _burnMechanism in the brief process.

This function looks innocent, if you try to interact with the contract owner, it will fail.

What I and others have missed is how to weaponize it into evil. 7/ pic.twitter.com/CthmAw3a2A

— Meows.eth (@cat5749) December 31, 2021

However, what is not known is that the creator of the contract maliciously planted this vulnerability in order to manage the “revokeOwnership” function soon, assigning ownership to himself, and then carefully planned a user can only buy assets but not sell assets Honeypot scene.

As a result, those who connected their wallets and received airdropped tokens have witnessed their asset value soaring, and as a result, driven by the seductive tendency to fear of missing out (FOMO), they are incited to buy more on the secondary Uniswap V2 market .

It must be noted that the behavior of interacting with the contract or asking for tokens did not result in losses, but the subsequent investment in YEAR assets on the decentralized exchange.

According to EtherScan, malicious entities can siphon 59.7 Ether (Ethereum) Comes from a scam and is equivalent to $225,000 at the current price. In addition, the daily trading volume of Uniswap V2 contracts reached US$6.8 million.

Although this number is not large in the broader context of DeFi’s $139 billion locked-in total value (TVL), the incident does highlight the review and verification of the authenticity and authenticity of newly formed smart contracts before connecting to the Web 3.0 wallet. The importance of contract due diligence.

Related: Retelling the biggest DeFi hack in 2021

Decentralization, usually in the form of financial distribution, is one of the basic principles of Web 3.0. The previous iteration of the Internet reduced the power to centralize Silicon Valley’s behemoths, and Web 3.0 promised to delegate power to the people.

Last year, a series of decentralized financial projects, including Unified exchange, dxy, Parallel exchangeEt al. successfully deployed native assets (many of which are worth tens of thousands of dollars) to community members to promote the development of their ecosystem.

last month, ENS becomes the latest project To demonstrate the true potential of the governance model, recently, OpenDAO’s SOS token and GasDAO’s GAS token were allocated to those who registered for trading activities on OpenSea, the leading NFT market, and those who spent at least $1,559 in ETH on transaction fees people.

Now, while these projects are legitimate innovations with publicly documented roadmap goals, the growing popularity of such airdrops—especially their exaggerated speculations and weird early expectations of projects that have just emerged from the crypto womb—may become The catalyst of the carpet-pull trend, the Ponzi scheme, and the rake and sell-off project in pursuit of short-term monetary gains are similar to the initial coin offering (ICO) token era in 2017.

Despite the success of a few assets launched during the ICO boom, a large number of assets have experienced a catastrophic fall in financial grace, tarnishing the integrity and confidence of the entire cryptocurrency field, and fueling mainstream narratives that are usually dismissive.

It feels like we are back in the past ICO token era. However, what we get now is airdrops and carpets, not white papers.

What a good way to end $year

— Richerd.eth ?? (@richerd) December 31, 2021

Looking to the future, rumors have potential Meta mask and Outside sea Tokens are fostering optimism about building a truly decentralized and community-centric Web 3.0 industry. Driven by venture capitalists and technology giants, whether this technological utopia can become a reality is another matter.

The views, thoughts and opinions expressed here are only those of the author, and do not necessarily reflect or represent the views and opinions of Cointelegraph.