Saturday, September 28, 2021

R&D; Researcher: ETH-Based Fair Win Is a “Ponzi Scheme”

Fair Win, a gambling platform built on the Ethereum network, is alleged to have several vulnerabilities that put players’ funds at risk. Philippe Castonguay, and R&D researcher at Horizon Games, comments that all respective details regarding the vulnerabilities “will be published soon.”

Fair Win = Unfair Losses

The researcher refers to the gaming site as a “Ponzi scheme,” saying that players are promised serious ETH-based gains granted they play their cards right. That, right there, should make a lot of players want to run away in fright. As we’ve seen in the crypto space, when something seems to good to believe, it probably is.

He further states that the structure of Fair Win is closer to that of a pyramid scheme, with the platform accounting for more than 60 percent of gas use on the Ethereum blockchain. At press time, its smart contract contains more than $8 million in ether tokens.

On its website, Fair Win claims that any statements surrounding a potential Ponzi scheme involving the game is “misleading.” It also states that any risks regarding stolen funds are false, and that its smart contact is completely secure.

While Castonguay says the vulnerabilities on the site haven’t been exploited, there are three primary problems. The first involves the contracts administrator being able to drain the $8 million in ether tokens at a moment’s notice. The second allows the contract owner to prevent players from making withdrawals indefinitely, and a third one allows funds to be stolen by virtually anyone, not just the people in charge.

Castonguay also warns:

There may be more.

As we have seen, cryptocurrency is a prime industry for situations like these, and Ponzi schemes within the digital money space have been running rampant for the past two years. One of the most common factors of a Ponzi scheme is that the money you invest is not going towards your primary gains, but rather towards other debts incorporated by the enterprise or the system owners. It’s a classic notion of charging Peter to pay Paul, and the money you’re investing isn’t being directed back towards your wealth or well-being.

How to Keep Yourself Safe

However, one source suggests a few tricks to protect yourself. For one thing, it’s always important to understand who’s running a venture before you get involved. Before you place any money in a platform, look at the executives and see what you can find out. If you see that they’ve been involved in a lot of “failed MLM projects,” there’s a good chance that whatever enterprise you’re considering is a Ponzi scheme. This is a project to avoid.

Also, if the venture has been around for some time, try to see if it’s missed any deadlines in the past, another sign that something illicit is going on.

The post R&D Researcher: ETH-Based Fair Win Is a “Ponzi Scheme” appeared first on Live Bitcoin News.

R&D Researcher: ETH-Based Fair Win Is a “Ponzi Scheme”

Cryptocurrency is a digital currency that uses encryption (cryptography) to regulate the generation of currency and verify the transfer of funds, independently of a central bank. Cryptography is the practice and study of techniques for secure communication in the presence of third party adversaries.

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