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Yash Chaudhary
Jan 31, 2022
by Yash Chaudhary

PeckShield Says Funds of DataDAO Users Are at Risk

DataDAO
According to PeckShield, a project named DataDAO, which advertises itself as a data marketplace platform, has a backdoor that can be used to steal users' funds through approvals. Crypto scams are on the rise in the crypto industry, preying on uninformed as the market grows in popularity. 

On January 31, PeckShield's Twitter account issued a real-time alert calling the project a scam and highlighting the precise code in question. DataDAO has not yet responded to the notice, and there has been no mention of it in the crypto community.

DataDAO is a platform that claims to be seeking to create a dataset marketplace in which data sharing is rewarded.

Its mission statement reads, “The pooling of data assets into a meaningful and valuable dataset that its value is greater than the sum of its parts.”

Crypto Scams are Rising

The project does not have the most professional appearance, with only a few followers on Twitter and a clearly unfinished website. There have been no instances of money being stolen so far. PeckShield, a blockchain security firm founded in 2018, has people from Microsoft, Intel, and Alibaba on its team. It is in the top three of the Ethereum Bounty Program, and it has formed collaborations with a number of blockchain companies.

In addition to the DAppTotal and CoinHolmes services, PeckShield also offers security solutions and tools. The company discovered 50 probable fraud tokens on the Binance Smart Chain a few weeks ago. 

The crypto sector is still filled with scams. Last year, scams resulted in the theft of $14 billion, up 79 percent from 2020. Pump and dumps and bogus platforms are common sorts of crypto frauds, but unscrupulous actors can operate in a variety of ways.

Crypto frauds are expected to be the biggest threat in 2022, according to members of the United States NASAA. This year has already had a rocky start, with one Bitcoin user losing $1.1 million in a fraud involving Michael Saylor's picture. NFTs are not immune from theft though, with one Bored Ape NFT collector losing nearly $1 million to Discord scammers. 

As a result of these incidents, teams are working on security solutions to prevent further losses. The auditing of smart contracts is an important step, and teams are also looking into decentralized insurance solutions.

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PeckShield Crypto frauds Risk User Funds DataDAO
PeckShield Says Funds of DataDAO Users Are at Risk
Yash Chaudhary
Yash completed his graduation in b.tech (Computer Science ). Yash is passionate about applications of blockchain technology. Yash believes use of blockchain technology can transform our lives at a large scale. Yash daily reads articles, research reports and also documentation of different protocols. Yash listen to podcasts to know the view of industry experts.

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