A DeFi trader has lost a fortune for mistakenly sending his 1000 SUSHI coins to the wrong address. This incident reminds us that the crypto space is dangerous for the newbie, with new participants in the decentralised finance (DeFi) space don’t understand how applications work and mistakes can be easily made, which result in financial lost, that cannot be recovered.
9,999.988 SUSHI Gone Forever
A transaction was spotted on Friday, which involved about 9,999.988 SUSHI transferred from FTX exchange to SUSHI token smart contract.
The supposed DeFi trader most probably sent these cryptocurrencies to the contract address by mistake. It’s a costly mistake, as these cryptocurrencies are sometimes impossible to recover.
SUSHI refers to the native digital currency of SushiSwap (not the popular Japanese food). It’s a decentralized exchange, which forked from Uniswap. Tokens sent to SUSHI smart contract are supposedly gone (forever), except the protocol developers intercedes with a function to recover it.
Looking at the transaction details on Etherscan, the amount of SUSHI lost or transferred to the contract address was worth US$188,899 during the time of the transaction.
Another Trader Loses $10,000 Worth of DAI
A similar case today involved DAI, the decentralized US dollar-backed stablecoin developed by MakerDAO. A trader also mistakenly sent 10,083.935 DAI to the protocol’s smart contract address, losing about US$10,000.
As per DeFi Pulse, the total value of digital currencies locked in decentralized finance protocols are currently worth over US$42 billion. The increasing reports of losses simply indicate that the industry is still in its nascent stage, and some traders lack a clear understanding of the DeFi applications. Hence, there is more room for the industry to grow further as the new participants get acquainted with the protocols.
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