Ordinals Finance, a decentralized finance (DeFi) project, has conducted a $1 million rug pull despite having undergone a security audit by CertiK, a blockchain security firm. The incident has raised questions about the effectiveness of security audits in the DeFi space.
What is a Rug Pull?
A rug pull is a type of exit scam in which the developers of a DeFi project suddenly withdraw all the liquidity from the project’s pools, leaving investors with worthless tokens. Rug pulls are a common occurrence in the DeFi space, and they can result in significant financial losses for investors.
Ordinals Finance Rug Pull
Ordinals Finance, a DeFi project that claimed to offer a decentralized exchange (DEX) and yield farming, conducted a $1 million rug pull on August 31, 2021. The project’s developers withdrew all the liquidity from the project’s pools, leaving investors with worthless tokens.
CertiK Audit
Ordinals Finance had undergone a security audit by CertiK, a blockchain security firm, prior to the rug pull. The audit had given Ordinals Finance a score of 97 out of 100, indicating that the project had a high level of security.
Questions Raised
The rug pull by Ordinals Finance has raised questions about the effectiveness of security audits in the DeFi space. While security audits can provide investors with some level of assurance, they are not foolproof. Investors should always conduct their own due diligence before investing in any DeFi project.
Conclusion
The rug pull by Ordinals Finance is a reminder that investors should always be cautious when investing in DeFi projects. While security audits can provide some level of assurance, they are not a guarantee of security. Investors should always conduct their own due diligence and invest only what they can afford to lose.
