BIG news out of the crypto space this morning/afternoon as the largest DeFi hack in crypto history happened to the Poly Network.
Before we continue, let's clear up some confusion. DeFi is short for decentralized finance, which you can read more about here. The idea of DeFi is pretty self-explanatory: decentralize the middlemen from typical financial applications (transactions, loans, insurance, crowdfunding, derivatives, etc.). Most DeFi tokens are built on the Ethereum network. Some of the top DeFi tokens include Chainlink, Uniswap, and Pancakeswap. You can see a list of top DeFi Tokens here.
This is the biggest cryptocurrency hack so far. Coincheck lost around $530 million in early 2018.
Within the hack, there was $33 million stolen of stable coin USDT (US Dollar Token). The company behind USDT, Tether, froze that money in the hacker's wallet:
Some random user then informed the hacker that his USDT was FROZEN:
The hacker then went on to reward the individual for telling him this with almost 14 ETH:
Seeing this, others on the Ethereum network tried to help out the hacker:
He was then hit with tips on how he should launder his money:
Ultimately, the hacker channeled his inner Joker and said he isn't in it for the money.
Another star that emerged from this whole debacle was Hanashiro.eth, the fella who told the hacker that he couldn't use USDT. He donated 10% of his "earnings" in this to Vitalik (Ethereum founder):
He didn't want to cause any harm…he is just a crypto enthusiast!
Anytime a hack is done, it is a good time to remind everyone that if you keep any of your crypto on an exchange (e.g. Cash App, Coinbase, etc.), you are at risk of losing everything. Look into buying a hardware wallet, that way you can control your BTC/ETH.