Pseudonymous blockchain sleuth, Tardfiwhale, renowned for his insightful predictions within the cryptocurrency space, has recently sounded alarms regarding critical weaknesses discovered within the Ethena protocol. Ethena, a rising blockchain synthetic dollar stablecoin platform, has garnered attention for its decentralized approach. However, Tardfiwhale’s findings cast a shadow over its perceived stability.
Since March 15, Tardfiwhale has been vocal about the existence of what he terms as “critical flaws” within Ethena’s infrastructure. These flaws, he asserts, pose a significant risk to users’ funds, potentially resulting in substantial financial losses. Notably, Tardfiwhale’s past predictions have proven accurate, including forewarnings about the downfall of Luna and UST, as well as predictions about potential bank runs involving the OHM platform.
In a curious twist, Tardfiwhale has chosen not to disclose the specifics of these flaws without compensation. He has initiated a call for donations to certain entities, positioning them as intermediaries in the disclosure process. Initially, he requested $500,000 in donations, with half earmarked for Protocol Guild, a collective of Ethereum developers, and the remaining portion divided between Zachxbt, a fellow crypto researcher, and the legal defense fund for developers associated with Tornado Cash, who are embroiled in money laundering charges.
Subsequently, on March 18, Tardfiwhale escalated the bounty to $1 million, citing the involvement of Maker and Mantle protocols in Ethena, which are expected to make significant investments in the platform. This increase in the bounty maintains the same allocation proportions among the designated recipients.
In explaining his decision to seek donations prior to divulging the identified flaws in Ethena, Tardfiwhale emphasized a desire to contribute positively to the community. He expressed concern about the potential fallout from another cryptocurrency disaster, citing previous incidents involving UST, FTX, Celsius, among others. Tardfiwhale underscored that his motivations are purely altruistic, aimed at preventing harm to the broader crypto ecosystem.
Meanwhile, Ethena is on the brink of executing an airdrop of 750 million ENA, its governance token, indicating its ambitions for broader community engagement. Additionally, the platform has recently announced plans to introduce bitcoin as a backing asset, further expanding its utility and appeal within the crypto space.
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