shutterstock warning sign exclamation 738x410

The EtherDelta trading platform, and some of its representatives, may be unstable.

EtherDelta was one of the earlier decentralised exchanges and has a reputation as an exchange supporting more obscure ERC20 tokens. In December 2017 it was the target of a sophisticated attack in which the site was essentially hijacked and replaced by a fake facade, resulting in the theft of at least 308ETH and many more altcoins.

That hack was quickly addressed by EtherDelta on Twitter, and word quickly spread that the site was compromised and to avoid using it until given the all-clear.

That first attack took place shortly after EtherDelta was sold to a group of investors. Less than a week after that attack the new buyers launched EtherDelta into an initial coin offering (ICO) for a new EtherDelta token. It had no whitepaper, was found to have misused the ICO Ratings logo and offered no concrete information on the token’s purpose.

Despite these troubles, the exchange has still picked up trading volume following the attack and largely recovered. But recent developments suggest further challenges.

Firstly, the official ED Twitter was suspended and the ED ICO page has been taken down.

Secondly, the new official ED Twitter account – confirmed as official by ED Telegram admins – started tagging phishing accounts.

Thirdly, the same account – the closest thing to an official ED representative currently available – has been involved in other unusual Twitter exchanges. The exchanges have since been deleted, but not before being preserved for posterity by a Reddit user on a thread which has been closely tracking developments.

It’s not entirely clear what’s happening with EtherDelta, but some of the exchanges suggest complications in the transfer of ownership following ED’s purchase.

ED twitter 1

This information should not be interpreted as an endorsement of cryptocurrencies or a recommendation to invest. Historic performance is no guarantee of future returns. As an investment class, cryptocurrencies are speculative investments and investing in cryptocurrencies involves significant risks – they are highly volatile, vulnerable to hacking and capital loss and sensitive to secondary activity. Before investing you should obtain advice and decide whether the potential return outweighs the risks.

Latest cryptocurrency news

Picture: Shutterstock


Read more