Polkabridge, an IDO platform, on a tweet shared publicly, called Sirius Finance IDO a scam. Sirius Finance is the first cross chain stablecoin AMM and farming center on PolkaDot and Astar. It has more than 56,000 followers on Twitter. Let us find out what went wrong with Sirius Finance IDO participants that participated in the IDO through Polkabridge.
What exactly happened with Sirius Finance IDO?
Sirius Finance IDO participants who purchased their tokens through Polkabridge IDO platform, could not transfer their tokens to MEXC crypto exchange, when the tokens started trading. Polkabridge claims, the IDO participant’s wallet were blocked from transferring to MEXC through smart contract, and was done on purpose.
First 40 minutes, the users could not transfer to MEXC exchange, and hence the tokens that were trading on the exchange belong to the members.
They dumped the tokens heavily, and by the time the users were able to transfer their tokens, it was already trading below IDO price.
All this time, Polkabridge team were in constant touch with Sirius finance team but that did not help.
Polkabridge team has warned that Sirius Finance, has a fully centralized and controlled smart contract, orchestrated by the Sirius Finance developers. Their team can block any address anytime, like they did with PolkaBridge.
This indeed is a serious issue, if found true.
The Sirius Finance smart contract is written under proxy mechanism, which means they can change the code any time, and more importantly ‘n’ number of times. The code is also not audited.
For anyone who holds a massive number of token could end up locking his tokens from transfer, and sell.
What Polkabridge things Sirius Finance Team will do in Future?
Polkabridge team thinks their devs will continue selling the tokens silently, draining market liquidity to almost zero.
They may make changes in the smart contract to create black holes intentionally.
Many big bag holders may be blocked from token transfer, for no fault of theirs.
Since the contract is not audited, the code may be made malicious, and if you interact with their smart contract you may end up losing all money from your wallet, in future.
PolkaBrdige to Issue A Full Refund to all 35 IDO investors
Polkabridge team will issue full refund to all 35 investors who invested in Sirius Finance IDO through their platform. This is a welcome step taken by the team to protect the interest of the investors. However, this is not the first time there has been such issues with any new crypto project. Ignoring the locking part, many times, with many crypto project, their has been issues of token dumping by the team, as a result, investors losing their money.
Pokabridge plans to do more due diligence in future before listing any tokens in their platform.
Sirius Finance team has not replied anything to the same Twitter thread.
