With so many attacks on the crypto industry happening with intensified frequency nowadays, the argument could be made that increased security and the promise of safety are more important now than ever before. ShibaSwap’s security and transparency were therefore called into question amid increasing concerns about the exchange.
Regardless of the immense recent success of ‘dog-themed’ cryptocurrencies like Dogecoin (DOGE) and its alleged successor, Shiba Inu (SHIB), many believe that these altcoins, while successful, do not possess the same kind of security needed to make investors feel truly safe. There have thus been imminent warnings about the decentralized exchange’s liquidity providers and how capital is apparently being thrown with minimal care or caution into a protocol that has questionable transparency as well as security.
Just a day after its launch, ShibaSwap had managed to gain a TVL (Total Value Locked) of over $1 billion. Today, DeFi Safety (a platform reviewer) released a report according to which ShibaSwap only managed to score a 3% score, which is way below the required level of 70% that the site would normally consider as a pass.
Needless to say, this score is absolutely devasting for any exchange or platform, and it essentially implies that ShibaSwap is not to be trusted. As a result of this spectacular fail, many veteran investors are given yet another reason not to become involved in the exchange, as the DEX had only passed 2 out of the overall 22 review criteria. The protocol did manage to score 30% in terms of the clarity provided for the information regarding its whitepaper.
ShibaSwap lacks in many aspects
The abovementioned review’s author was revealed to be Rex Hygate, who had also founded SecuEth & Caliburn Consulting. He had noted that ShibaSwap’s team is anonymous and that there is a clear lack of documentation as well as transparency. He then highlighted that he did not see any public software repository or development history, as well as noting that there is no way to actually test the code.
Yesterday, Joseph Schiarizzi (Solidity developer) had stated via an article that investors need to be warned about ShibaSwap and that this exchange should be actively avoided. He said that the exchange’s staking contract was controlled by a singular address for the majority of its operations towards the beginning.
ShibaSwap had also recently provided an update to the contract pertaining to the formation of a multi-signature account, in which 6 out of 9 Safe Owners were required to agree on any relevant transactions prior to execution.