WARNING!! A BILLION Dollar DeFi Hack Is Coming in 2021!

Egg yolk wassup Chico Army!…We have Euphoria,
the markets are ripe. It’s a special thing to experience. You're on top of the world, can do no wrong. Until it happens, the RUG is pulled. Don’t ever be caught slipping, because those
DeFi protocols you see popping up daily, they are being developed at the speed of light,
and there is always a period of darkness. You ready to get REAL…..dark. Because it’s time for Chico Crypto! Crypto is new, it’s young, it is still a
baby. Grand daddy BTC is only 12 years old…the
first decentralized currency which had to integrate itself into centralized systems. And those first years were rough for BTC,
let me tell you that.

Battered & bruised, bitcoin barely made it
out alive. Nearly 2 years after the initial launch in
January of 2009, Jeff Garzick, early core dev, posted this on BitcoinTalk “The "value
out" in this block #74,638 is quite strange: with the screenshot of the code. Jeff Garzick in August of 2010 just discovered
the largest Bitcoin BUG in it’s history. An inflation BUG an unknown attacker had discovered
a way to create themselves some extra BTC. How many extra?? 184 billion more BTC. If you know the supply is hardcapped at 21
million, you understand the gravity of this. Has the attacker been more modest, setting
their sights a little lower, it might not have been discovered before the damage was
done. Jeff spotted it within 90 mins, and it was
patched and corrected within 5 hours by Satoshi Nakomoto. So what’s the point I’m trying to get
across here? Well, these BUGs can lay dormant in protocols
for some time, and attackers are just waiting for the right moment to exploit. Remember Ravencoin??? Aka overstock coin?? I’m sure many of you don’t, but those
around in 2017 and 2018 do. Much hype…with Raven, it did well…a new
Bitcoin of sorts is what they said.

Top tier developers had created a next level
proof of work protocol. Well Raven suffered a similar fate to BTC…but
they weren’t able to notice it in time. In June of 2020, yes over 2 years after its
initial launch in January of 2018…it was exploited with an inflation BUG…that they
were not able to catch, and the attacker was able to mix and send to exchanges. Need another example? How about Stellar lumens. Stellar launched in June of 2014…3 years
later, in June of 2017, on it’s dang anniversary, the attacker exploited it with an inflation
bug for 2.2 billion lumens. As we can see from the block’s article,
the attacker exploited it 110 times, and Stellar didn’t catch it, they had to burn from their
community reserves to make up for it! So Today, all these new chains: Cardano, Binance
Smart Chain, Elrond, Algorand, Tezos, EOS, and even the ones I like: Polkadot, or the
untested ETH2 and proof of stake…they may have dormant bugs. Waiting to be exploited. That is just a warning, as the past tells
us it happens, even to Big names like Stellar. And that is just at base protocol level, bugs,
hacks and the like.

It’s easier to exploit, when smart contracts
are involved, widening the attack surface. As smart contracts, are contracts that do
things with your assets…. that have value! So we gotta back up, once again to the early
BTC days. Bitcoin is limited in it’s smart contract
set, as it does not support turing complete smart contracts. This means BTC is limited in what it can do,
obviously it can’t do DeFi.

But this meant, in the early days, no smart
contracts, bitcoin had to bend the knee to centralized systems. Of course the first bitcoin transactions were
p2p, between two anonymous people. As that was the only way to get it done, but
eventually Online trading venues were created that were centralized at the core, because
they had to be. The first popular bitcoin exchange to hit
the scenes was Mt.

Gox…what happened to it? Founded in 2010….hacked by 2011, and then
Exploited….hacked….to it’s death in 2014…. You follow a timeline of hacks and exploits
on exchanges….ya, it’s crazy how often it happens, even to centralized entities and
again the big names…Like Binance, never forget, they wanted to re-org the bitcoin
blockchain because of that! So now, let’s fast forward to today. DeFi, is a surging a blurging because of turning
complete smart contracts on Ethereum. Looking at TVL, total value locked up in Ethereum
DeFi…it has surged and crossed the 40 billion dollar mark. Shoot, I remember back in 2019, getting to
the 1 billion dollar level with DeFi was a big thing, I should know I covered it, I knew
DeFi was coming to kick off the bull run, with this video posted nearly 1 and a half years ago. Let’s watch now when I still had my long
hair… So, we are that stage I was talking about
today. 2 years since DeFi made its first strides. Many of those DeFi tokens have 10x’d and
beyond. Chico called and predicted that like no one
else could…. But I’m also calling and predicting something
else.

And it’s not a bright, green pastures outlook
like I had back then. With this acceleration to beyond 40 billion
TVL, 2021 will be the year of the GREAT DEFI HACK or Exploit….where billion of dollars
will be drained Why do I think this?? Well according to the block, in 2020 there
were 15 major DeFi hacks, where 120 million dollars was exploited…with the two largest
being 25 million and 24 million. And as we can see, BIG DeFi names bzx, even
uniswap, bancor, balancer, akropolis, origin’s stablecoin origin dollar, and even that pickle
got hit for over 19 million. All of those DeFi hacks, from BIG defi names. They all happened in 2020 when the TVL of
DeFi ranged from 1 billion dollars to 16 billion dollars. That TVL is over 40 billion in just 2 months,
an over 2x, and is showing no signs of slowing down. What’s happening today??? Even more teams popping up daily, with yield
bearing, farming assets, swallowing up peoples ethereum & erc20 assets.

Teams more inexperienced than the teams that
got hacked in 2020, and many of the teams fully anonymous….. And the man himself, who created the protocol
for DeFi to profiliterate warned of this in June of last year, during the DeFi summer
hype. Let’s listen to Vitalik’s words on the
Unchained podcast So did you hear what Vitalik said.

DeFi can’t promise a 2 percent chance of
breaking. That is a fact, many of the protocols can’t. I predict with a strong conviction that DeFi
is going to reach 100 billion dollar TVL this year, most likely during the summer of 2021
that level will be reached. What’s a 2 percent break of 100 billion
locked in DeFi??? That’s 2 billion dollars. So is DeFi going to break by 1 to 2 percent
in 2021?? Well at the rate things are moving, I would
say yes.

Of course, you have Ethereum DeFi, the hundreds
of dapps and smart contracts sucking up TVL..but now we have other chains, some with their
own smart contracts creating DeFi ecosystems. More smart contracts, more languages, more
TVL…when it’s turing complete. The attack surface grows…. Who to & when is it gonna happen, the great
DeFi hack of 2021?? I’m no miss cleo, future predictor so I
can’t give you that, but it can happen to even the best, 2020 is a pure example of that. How to protect assets in DeFi then?? Well I Never go all in on a DeFi project,
I never put all my eggs into one place in DeFi, because if all your eggs are in the
place that gets exploited. All your eggs go away… So I’ll leave you all with this question
to ponder on…. who came first, the Chico or the Egg? Cheers I’ll see you next time!.

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