Bitcoin
$ 35,769
Ethereum
$ 2,387.8
Litecoin
$ 162.80

FairWin Game Accused by Ethereum Developers as a Ponzi Scheme

Developers have found a critical vulnerability in FairWin, a gambling game built on Ethereum.

Join the fastest growing network on Telegram

According to Philippe Castonguay, an R&D researcher at Horizon Games, a blockchain-based game studio, FairWin “contains critical vulnerabilities that put all funds at risk” adding that “details on the exploits will be published soon.”

Castonguay also calls FairWin a “Ponzi scheme” due to the game’s structure of offering abnormal dividends to users who deposit ETH on its platform. While FairWin has been accused of running a Ponzi scheme, its structure more closely mimics a pyramid scheme, using network effects to benefit earlier participants.

According to ETH Gas Station, FairWin makes up over 60% of gas usage on Ethereum. The game’s smart contract holds over $8 million worth of ether. 

A notice on FairWin’s website claims that the risk of stolen funds does not exist and that FairWin’s “smart contract code has been securely authenticated.” The notice also calls claims that FairWin is a Ponzi scheme “misleading.”

Castonguay told a news site that there was no evidence the vulnerability had actually been exploited, but pointed to three main vulnerabilities they discovered, “one allowing the owner/admin of the contracts to totally drain [the smart contract containing $8 million in ether], one where the admin can prevent users from withdrawing forever and one where anyone, not just the owner, can steal new deposits,” he said, noting, “there may be more.”

About the author

A Nice Man

Related Posts

Leave a Reply

Newsletter

Subscribe To Newsletter

For updates and exclusive offers, enter your e-mail below.

Popular Posts

Elon Musk Meets Major North American Bitcoin Miners to Address Energy Usage
June 12, 2021By
Russian Central Bank Confirms Digital Rouble Trials Commence in 2022
June 12, 2021By
Thailand’s SEC Has Banned NFTs And Meme-Based Tokens
June 12, 2021By

Advertisement

Video Posts

In
Economic Inclusion And Social Impact Of 4IR
May 21, 20210
In
Flash Listing On Mandala Exchange
May 15, 20210

Crypto Stats


CryptoCurrencyUSDChange 1hChange 24hChange 7d
Bitcoin35,769 0.64 % 4.36 % 3.17 %
Ethereum2,387.8 0.99 % 0.76 % 11.38 %
Tether1.000 0.20 % 0.40 % 0.37 %
Binance Coin345.28 0.15 % 0.70 % 11.98 %
Cardano1.480 0.14 % 2.29 % 13.28 %
Dogecoin0.3144 0.55 % 2.13 % 16.77 %
XRP0.8383 0.27 % 1.68 % 13.64 %
USD Coin1.000 0.23 % 0.22 % 0.13 %
Polkadot20.91 0.39 % 0.20 % 16.68 %
Uniswap21.51 0.82 % 1.90 % 18.83 %

You have not selected any currencies to display