Following the worst year ever for <a href="https://www.cryptoknowmics.com/news/australia-prepares-to-regulate-cryptocurrency-service-providers-in-2023">cryptocurrency</a> thefts and attacks, the cryptosphere has provided some guidance to novice investors heading into 2023: constantly verify your smart contract permits and withdraw access.
<h2>Crypto Investor Revokes Smart Contract Permits</h2>
On January 1, Reddit user 4cademy <a href="https://www.reddit.com/r/CryptoCurrency/comments/100lheh/check_and_revoke_your_smart_contract_approvals/" target="_blank" rel="nofollow noopener">offered</a> to advise the community of cryptocurrency users in the r/CryptoCurrency forum, stating that they had authorized a large number of smart contracts during the previous two years and decided it was time to review the authorized <a href="https://www.cryptoknowmics.com/news/telegram-looks-into-auctioning-usernames-with-nft-like-smart-contracts">smart contracts</a>.

They discovered that almost all of their permissions were for unlimited quantities, which prompted them to withdraw approvals for every smart contract in their wallet because it was better to be safe than sorry, and they gave the advice that, at the very least, individuals should review the permissions and possibly cancel them.
<h2>Authorization of NFT and DeFi Protocols</h2>
The user explained that doing this is necessary because certain users of <a href="https://www.cryptoknowmics.com/news/pudgy-penguins-nfts-reach-record-highs-after-holiday-tour">nonfungible tokens (NFTs)</a> or <a href="https://www.cryptoknowmics.com/news/hackers-steal-8-million-from-bitkeep-wallets-in-latest-defi-hack">decentralized finance (DeFi)</a> protocols may have unintentionally authorized hostile smart contracts from phishing scams that are waiting to steal user cash.

These types of ice phishing schemes have been effective in the past; one particularly complex month-long hoax featuring a proposal from a fictitious film company resulted in the theft of 14 <a href="https://www.cryptoknowmics.com/news/bayc-founders-suggest-new-model-for-nft-creator-royalties">Bored Ape Yacht Club (BAYC)</a> NFTs from one wallet. Even "good-behaving" contracts that are well-known should be terminated since hackers may discover ways to steal money from associated wallets. In 2022, the top 10 exploits resulted in the theft of $2.1 billion, primarily through DeFi protocols and cross-chain bridges where hackers used flaws in already-existing smart contracts as cover.

Crypto Investor Advises Repealing Smart Contract Permits

The cryptosphere has provided some guidance to novice investors heading into 2023 of constantly verify your smart contract permits and withdraw access.

Gungun is an enthusiastic writer that likes to create content for various aspects of the blockchain and crypto industry. She carries out extensive research and provides readers with informative and high-quality material.

Crypto Investor Advises Repealing Smart Contract Permits

Top Picks