BNB Chain has sounded an alarm via its social media platforms about a potential Ponzi scheme titled "Mango Man Intelligent" developed on the Binance Smart Chain. The alert was posted, following the security specialist organization HashDit's analysis of the project, which raised some serious red flags.
"Mango Man Intelligent" caught the attention due to its aggressive referral system. Rather than relying on substantive external investments, the project's rewards seem to be primarily generated from user referrals. Such a setup closely mirrors that of Ponzi schemes, which generally do not have a sustainable growth model.
Moreover, the project's guarantee of a Fixed Annual Percentage Rate (APR) is disconcerting. There is no visible strategy to replenish the contract with staking tokens. This points towards a potential risk of insolvency, making it difficult for the project to meet its financial commitments.
HashDit also pointed out limitations concerning the unstaking function offered by the platform. These limitations might obstruct users from withdrawing their investments when required, making it considerably high-risk.
The contract owner's authority raised concerns as well. The owner has the power to prevent users from unstaking, thereby exerting control over users' investments. This lack of transparency and user control rings alarm bells for possible malpractice.
Furthermore, the staking contract is owned outright by a single Externally Owned Account (EOA). This situation presents a high centralization risk, which goes against the fundamental principles of blockchain technology.
The "Mango Man Intelligent" project currently holds more than $5 million in investments, thus constituting a substantial financial risk. In light of these concerns, HashDit has placed the project onto its Dappbay RedAlarm list.
BNB Chain’s post reiterates HashDit's caution, reminding users to conduct thorough research and diligence before investing in any project.
