Divergence Ventures analyst Bridget Harris took advantage of the exploit that arose during the May airdrop of the Ribbon project and earned more than $ 2.4 million in RBN tokens.
this @divdotvc analyst @_bridgeharris has made 652 $ ETH and counting from @ribbonfinance airdrops, quite impressive. finding wallets like their’s and copytrading them is probably the best way to make it tbhhttps://t.co/vqC1LjyfT3
— Gabagool.Ξth 🥀 (@gabagooldoteth) October 8, 2021
The company behind the project, Ribbon Finance, has tuned the token distribution so that “smaller contributors” will benefit more from the airdrop.
However, due to the whale-centric nature of many DeFi applications, most of the liquidity comes from a small number of addresses. 🐳
We wanted to create a more equitable distribution, so we applied a transformation on the distribution that favored smaller depositors.
— Ribbon Finance (@ribbonfinance) May 27, 2021
“Due to the whale-oriented nature of many DeFi-Applications, most of the liquidity comes from a limited number of addresses. We wanted to create a fairer distribution system, so we applied a transformation to it that encourages the participation of smaller investors, ”the company wrote in May.
Since Divergence Ventures is a Ribbon Finance investor, Harris was familiar with the system and may have been aware of the upcoming token unlocking. Using a large number of wallets, she sent transfers of 0.148 ETH to the project address. For each such transaction, the analyst received about 15,400 RBN.
On October 7, the project community voted to unlock tokens – users were able to perform operations with assets. According to CoinGecko, RBN was trading near $ 4.4 at launch. Harris earned 702 ETH from the sale (~ $ 2.47 million at the time of writing).
Against the backdrop of the situation that arose, the price of RBD fell by 17%, to $ 3.27.
The community accused Harris and Divergence Ventures of unethical behavior – the analyst could use inside information to make a profit.
If the VC firm had insider info on the farming and took advantage of that, it’s super shitty and other projects should seriously avoid letting them into rounds.
But that’s on them and not on Ribbon.
— Adam Cochran (@adamscochran) October 9, 2021
Community Manager Ribbon Finance denied these charges. Divergence Ventures itself admitted that it “crossed the line” and asked the community not to persecute Harris, who is “new to cryptocurrencies and is still learning.”
We realized that in sybil-ing the $ RBN airdrop, we crossed a line. A few notes:
— Divergence Ventures (@divdotvc) October 8, 2021
The company also confirmed that these actions were part of a targeted strategy. Divergence Ventures was a minority investor in Ribbon Finance (her check was $ 25,000), so she had no inside information – the firm “just knew there would be an airdrop.”
“One of the goals of Divergence Ventures is to make money. In cryptocurrency, this process is usually like a game – wrapped tokens, cross-chain, liquidity provisioning, staking, trading, burning, factoring … and participating in airdrops. While playing this game, we are constantly trying different tactics. Most fail. This “worked”, worked, obviously, relatively successfully, ”the company wrote.
Divergence Ventures sent the cryptocurrency received by Harris back to the project treasury. By voting, the Ribbon community will be able to independently decide what to do with the assets received.
Recall in September NFT-marketplace OpenSea fired an employee convicted of insider trading.
Later, the head of the platform, Devin Finzer, said that the actions of a specialist cannot be qualified in this way, since the company “does not consider NFT as financial assets.”
Subscribe to the crypto-daily.news YouTube channel.
Found a mistake in the text? Select it and press CTRL + ENTER
#Divergence #Ventures #Analyst #Raises #24M #Ribbon #Airdrop #Exploit