Meme Black Swan: On-chain exchange DEXX was stolen

The most sensational thing in the circle these two days is probably the DEXX incident.

I don’t know much about this platform. I just checked the relevant reports online and learned about the gameplay of this platform after seeing many people defending their rights on Twitter.

This is a platform similar to a robot trading platform. The main objects of the platform trading are various meme coins. The platform uses robots to allow users to automatically trade tokens to make profits.

Although I have not participated in this platform, I have tried similar gameplay----I participated in a trading robot on TON.

When I clicked on this robot, it prompted me to give it the private key of the account, and then it could help me trade automatically.

As soon as I saw that it asked me to give it the private key, I immediately turned off the robot and never paid attention to any such applications again.

The reason I turned it off is simple: I will never participate in any application that requires me to hand over my private key, no matter how tempting it is.

According to the information currently compared by multiple parties, the amount of assets stolen from users in this incident has reached tens of millions or even hundreds of millions of dollars.

Although the truth of the incident is still under further investigation, more and more details that have been exposed can still let us see the problems reflected in the incident:

Security issues caused by centralized custody of private keys.

The security issues of encrypted assets are almost a commonplace topic in the ecosystem. This type of security incident basically occurs at least once a year.

The basic reasons for the incident are nothing more than the following three points:

- Using high returns as bait

- User exposure of private keys

- Poor management of private keys.

Among many security incidents, their manifestations are not stereotyped, and they will appear in new forms every time, but if you look closely, they are essentially the same.

In the DEXX incident, the recommenders who participated in the recommendation could get high commissions, the platform's publicity benefits were very attractive, the players who participated in the platform had to give their own private keys, and the platform's management of their private keys was centralized.

All these problems have appeared.

For such applications, there will always be players who have such a fluke mentality:

I only put a little money in to play, and when I make money, I will stop, and I can safely withdraw.

Such an idea is beautiful, but when it comes to actual operation, most people can't stop.

Even if you start with a small amount of money, once you get a high return, you will not think of stopping, let alone getting out of it. At this time, people's hearts will swell, and they will only want to use more money to gain greater returns. All the defenses set in their hearts beforehand will be lifted one by one.

Therefore, once something goes wrong, the users will definitely lose a huge amount of money.

In this incident, the amount of money lost by users who participated in rights protection and exposed losses online was not small.

Many users also mentioned that they reported to the public security organs and filed a case.

In our country, transactions related to crypto assets are very sensitive issues, which are themselves a relatively gray area in the law. In this case, it is hard to say how the public security organs will handle such cases, and even if they handle them, they may cause other troubles.

So for retail investors like us, we can only protect our own interests in various activities in this field.

We must attach great importance to the security of encrypted assets, rather than entrusting security to others.

Besides, isn’t the original intention of the birth of blockchain technology to hope that each user can control their own private keys and firmly grasp their own assets?

I think similar incidents will happen in the future, and every time such incidents happen, users will suffer losses. If it is understandable that new users who enter this field are unlucky due to lack of experience, old users who have been working in this field for several years should reflect on themselves deeply.

I always think that security is always the first priority in the encryption ecosystem. Any tempting benefits are just a moon in the water and a flower in the mirror when security is not guaranteed.