DeFi: Crypto Investor Lost $470,000 on a Dog-inspired

Brian Nguyen says he “unexpectedly woke up” on Friday to find he’d lost roughly $470,000 in a DeFi crypto project.

The ache is real, Nguyen admits.

Nguyen says he didn’t do enough research before investing. “In crypto, we tend to ‘buy first, research later,’” he explains.

It’s unknown what happened to Nguyen’s investment idea.

AnubisDAO appears to have raised $60 million via the sale of its cryptocurrency, ANKH.

ADAO

(A DAO a blockchain-based decentralized autonomous organization. As an investor and architect of several successful DAOs, Cooper Turley told CNBC Make It, “a DAO is an internet community with a shared bank account.” While Anubis claims to be a DAO, its details and purpose are unknown.)

Nguyen and others who claim to have invested in AnubisDAO claim that the entire $60 million transferred and lost.

Some suspect phishing, when attackers send emails with URLs asking for the holder’s private keys. Others suspect a “rug pull,” a typical crypto scam in which engineers abandon projects and steal investors’ funds, albeit no proof exists.

AnubisDAO did not immediately react to CNBC Make It’s inquiry.

The token sale ran from Thursday to Friday, and Nguyen says he invested thousands of dollars in ether. (CNBC) It couldn’t independently verify the investment linked to Nguyen.)

He claims AnubisDAO appealed to him because it promoted itself similarly to other dog-inspired cryptocurrencies like dogecoin or shiba inu, which have recently gained popularity.

Nguyen believes the sale on Copper Launch, a well-known crowdfunding platform, increased respectability.

Nguyen also heard the AnubisDAO was backed by a popular crypto influencer named 0xSisyphus, whom Nguyen respects.

“I was convinced to buy.”

0xSisyphus had previously tweeted about the AnubisDAO and the token sale, but on Friday he stated that the 0xSisyphus “account’s namesake is plainly compromised,” implying that 0xSisyphus was not involved in the AnubisDAO affair.

A 1,000 ether (about $4 million) prize has also been announced by 0xSisyphus.

CNBC Make It’s request for comment from 0xSisyphus went unanswered.

The AnubisDAO tweeted that the event was due to a “unforeseen mistake with Copper [Launch].”

Copper Launch

Copper Launch responded that it had not been compromised, but that the Anubis team had.

It stated that any entity can utilize its crowdfunding site, and that it is not endorsing the project. “Even great initiatives and teams make mistakes. Online cash isn’t always simple. All the best to the @AnubisDAO team,” Copper wrote.

Sadly, losing money on crypto ventures is typical. If it is a scam or phishing attack, monies may returned, although it is unlikely.

That’s why analysts say bitcoin is a dangerous, volatile, and speculative investing option. Experts advise only investing in decentralized finance (DeFi) programs or coins that you can afford to lose.

“I believe each DeFi protocol and project has a different level of risk and reward,” Meltem Demirors, CoinShares’ chief strategy officer, told CNBC Make It earlier. But, “it’s critical to recognize that high profit comes with considerable risk. We see high yield because there is risk.”

Crypto investor says he lost 6 figures on a dog-inspired DeFi project (cnbc.com)

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