The decentralized finance (DeFi) sector witnessed a surge in memecoin excitement, as celebrities jumped on the bandwagon and launched their own memecoins. This marks a notable shift from the trend of celebrities launching nonfungible tokens (NFTs) in the previous year. Amidst the meme frenzy, pop star Iggy Azalea devised a unique plan to combat fraud and rug pulls.
Meanwhile, a trader who suffered losses of 1,807 liquid-staked Ether (ETH) amounting to $6.91 million seems to have recovered a significant portion of the stolen funds from scammers. A recent report from Immunefi revealed a 12% decrease in crypto losses related to hacks and frauds in May compared to the previous year.
The top 100 DeFi tokens had a mixed week, with most tokens experiencing sideways price momentum. However, many tokens traded in the green, and the total value locked in DeFi contracts remained above $100 billion.
According to a report from blockchain security firm Immunefi, losses from crypto fraud and hacks decreased by 12% year-over-year in May. The total losses for the month amounted to $52 million, down from over $59 million in the same month last year. This figure also represents a 28% decline compared to the losses in April. These findings reflect an ongoing trend of decreasing losses from hacks and fraud in the Web3 industry. Immunefi’s report in March indicated a 23% decline in losses in Q1 2024 compared to the previous year. Additionally, CertiK reported in April that it witnessed its lowest losses ever during that month.
Moving on, Iggy Azalea, the pop star turned crypto star, announced her plan to burn her own coins whenever a celebrity coin is identified as a scam. She aims to establish trust and integrity within the crypto community and distinguish herself from other controversial celebrities. However, Bubblemaps recently alleged that insiders purchased a significant portion of the token’s supply at launch before Azalea announced the launch of her memecoin, Mother Iggy (MOTHER). These holdings were then dumped for $2 million before the official announcement.
In a separate incident, an exploit on the BNB Smart Chain resulted in the loss of approximately $80,000 worth of a BEP-20 token labeled as “BTC.” Although this amount may be considered small compared to other crypto exploits, it raised suspicions about the attacker’s motives. On-chain security firm Cyvers suggested that the attacker could be a white hat or ethical hacker who uses their skills to identify security vulnerabilities.
Furthermore, a victim who lost 1,807 liquid-staked ETH worth $6.91 million on May 26 appears to have recovered a significant portion of the stolen funds from the scammers. This incident involved the phishing group Inferno Drainer, who used offline authorization signatures to steal the user’s ETH assets. However, the victim received a refund, which is a rare occurrence.
In the DeFi market, data from Cointelegraph Markets Pro and TradingView indicated a mixed week for the top 100 DeFi tokens by market capitalization. While most tokens traded in the green on the weekly charts, there was a sustained bearish pressure for several weeks. However, the total value locked in DeFi protocols surpassed $100 billion.
That concludes our summary of the most notable developments in the DeFi sector this week. Join us next Friday for more stories, insights, and educational content about this rapidly evolving space.