Author: Red Bean and Ice, TechHub News
As a long-term observer in the field of cryptocurrency trading, everything that happened to DEXX once again made me deeply aware of the volatility of this market.
1. The DEXX platform changes, causing market turmoil
When the first rays of sunlight in the morning had not yet completely fallen, the trading market should have been relatively calm, but the major Meme communities were instantly thrown into chaos by a piece of news. The on-chain trading terminal DEXX, a platform that has been quite active in recent trading scenarios, suffered a very serious attack.
From the fluctuations in on-chain data and the feedback from many users, it is clear that a large number of users’ funds have been illegally transferred. The scope of this attack is staggering. It is not limited to a certain blockchain, but like a big net, it spans multiple chains such as SOL, ETH, TRX, BASE, BSC, etc. The types of asset tokens transferred are also numerous and complex, involving many popular and niche currencies.
This sudden situation immediately triggered a chain reaction in the market. Many meme coins were the first to be affected and suffered from selling pressure, and their prices fell rapidly in a short period of time. As a trading observer, I am well aware of the contagiousness of this market sentiment. Once panic spreads, the entire market trading pattern may be disrupted.
2. Analysis of DEXX platform: functions and hidden dangers coexist
DEXX, a full-chain trading platform that once attracted much attention in the field of Meme coin trading, has always attracted many traders with its rich and diverse functions. Its advertised functions such as on-chain mobile stop-profit and stop-loss, hot concept push, smart wallet tracking push, doubling of capital, one-click anti-pinch, one-click buy and sell, etc., in theory, do provide traders with many conveniences, as if they are keys to open the door to wealth.
However, through this incident, we have to re-examine the risks that may be hidden behind these functions. Why is a seemingly fully functional trading platform so vulnerable in terms of security protection? This may be because while pursuing functional innovation, it neglected to polish the core security mechanism, or there may be some fatal loopholes in the technical architecture. These problems may be covered up by the prosperous trading scene on weekdays, until the outbreak of this attack, they were completely exposed to the public.
3. The tragic situation of user funds being stolen: the losses are shocking
1. Huge scale of theft
Judging from the transaction data and user feedback, the scale of the DEXX user funds theft is huge. A large number of users watched their hard-earned funds being transferred away without any warning.
Right after the incident, rights protection groups sprang up like mushrooms after rain, and many victims flocked in, anxiously registering their stolen information. Although some of this information is still being verified, judging from the preliminary confirmed data, the situation is already very serious.
2. The amount of loss is staggering
The post by SlowMist founder Yu Xian on the X platform gave us a more intuitive understanding of the loss. According to him, based on the data submitted by community users, the loss of DEXX theft has reached millions of dollars, and these funds are now scattered in multiple different hacker addresses, like a stone sinking into the sea, and it is extremely difficult to recover them.
Other community users have concluded through their own statistical methods that the total amount of losses may exceed tens of millions of dollars. Although the final amount of stolen funds cannot be accurately determined because the address statistics have not been fully completed, judging from the tens of thousands, hundreds of thousands or even millions of dollars stolen mentioned in the feedback from many users, this fund theft incident has undoubtedly dealt a heavy blow to countless traders.
4. Official response and market doubts: a crisis of trust emerges
1. DEXX official statement
After the incident, DEXX Chinese officials responded quickly on the X platform. They claimed that they had noticed the problem of tokens being transferred away as reported by many users, and had convened several professional security audit teams to conduct analysis and investigation. They emphasized that the team was doing its best to solve the problem, and clearly stated that there was no "Rug" (runaway) behavior, and that subsequent progress would be synchronized with everyone through in-site push and X/Telegram notifications as soon as possible.
From the perspective of transaction observers, this official response seems positive, but it seems a bit pale in the face of such a serious incident. After all, users' funds have suffered huge losses, and what they need most at this moment is a practical solution and a promise that their funds can be guaranteed, rather than just a few words of comfort.
2. DEXX founder speaks out
DEXX founder Roy (@honza204) also responded to this matter later, saying that he would pay for the compensation and that some users have been quarantined. He once again emphasized that there was no "Rug" and that the problem was being investigated. However, due to the complexity of the situation, he was unable to reply to everyone one by one, so please rest assured.
However, the market does not seem to buy it. In the feedback from many traders I have observed, everyone is generally skeptical about this response, and doubts are coming one after another. Many people think that this may be just a stopgap measure made by DEXX to temporarily stabilize the situation, and even suspect that it is deliberately running away and stealing from the inside. Once this trust crisis is formed, it will undoubtedly be a fatal blow to a trading platform, which will directly affect the subsequent operation of the platform and the retention of users.
5. KOL promotion farce: imbalance between interests and responsibilities
In the rise of DEXX, the promotional role of KOL (key opinion leaders) cannot be underestimated. In this round of Meme craze, DEXX quickly became popular in a short period of time with the strong promotion of KOLs, attracting a large number of users.
According to KOLs who revealed to Odaily, in order to acquire users, the current commissions given by Bot to KOLs are quite high, up to 50% - 60% of the handling fee. Driven by such tempting benefits, KOLs have stood up for DEXX, describing it as "Binance on the chain" and other flattering words.
However, after the incident, these former “fans” showed a completely different side. Many KOLs began to delete posts quickly, eager to cut ties with DEXX, as if to distance themselves from the disaster.
Among them, the one who received the most complaints from netizens was the X KOL Youmin @youmin8341 who had previously posted a sky-high commission rebate. He immediately tweeted @DEXX founder after the incident and said that his commission rebate had never been withdrawn, but this move was mercilessly ridiculed by netizens: "Two sticks broke up the brotherhood, and the transcripts were all brothers' names."
From the perspective of transaction observers, this farce fully exposes that KOLs pay too much attention to their own interests during the promotion process, while ignoring the risk assessment of the promoted products and the responsibilities they should bear to users. This imbalance between interests and responsibilities not only harms the interests of users, but also has a negative impact on the credibility of the entire industry.
6. Security Warning: Escort on the Transaction Road
The theft of DEXX user funds is undoubtedly a heavy wake-up call for every one of us who observes transactions. In the field of cryptocurrency, which is full of opportunities and risks, every transaction decision is related to one's own wealth and destiny.
As the hottest field with the most wealth-making opportunities in this round of bull market, the Meme sector has attracted countless traders to join in. On-chain operations and the use of various BOTs have long become everyone's daily habits. However, we cannot ignore security issues in pursuit of profit.
The security suggestions compiled are worthy of every trader's careful consideration and strict compliance:
- Do not trust other people's recommendations easily. Be sure to study the product mechanism in depth and give priority to using BOTs whose private keys are not stored on the server.
- Choose a BOT that has been in operation for a long time, has a strong team and has no record of safety accidents.
- In the TG group, do not click on unfamiliar links at will, and do not reply to any private messages.
- Regardless of the tool you use, after completing a large amount of fund transactions, it is recommended to withdraw the funds to a self-hosted wallet in a timely manner.
You should know that Bnanagun, Unibot, etc. have all been stolen before, and DEXX will definitely not be the last one. In this Web3 world that is like a "dark forest", only by staying vigilant and paying attention to security can you go further on the road of trading and avoid becoming the next victim.
It is hoped that through a detailed analysis of this incident, traders will be more aware of the risks in the trading process and make more informed decisions in future trading activities.
