As most of you are probably aware, recently vulnerability in CREAM platform was discovered.
Swag token was added as collateraliable asset with 50% collateral ratio.
Problem is that swag is completely centralised asset, with many millions tokens already created and minting function in smart contract active. That means entity controlling Swag can borrow 100% funds from CREAM and never pay them back (they would lose their swag tokens, but they could create more anyway).
Community predicter this vulnerability before even Swag was listed.
They wanted to prevent the listing but it was listed anyway, supposedly by DAO vote. In reality big whale decided on the listing. Who is that whale? More on that later.
Then the community wanted to delist Swag or TEMPORARILY reduce it’s collateral ratio (until the project is proven legit and not threatening to the platform). It was almost delisted, but then again, last minute vote from whale account prevented it happening.
Here is where it gets complicated. Both Cream and Swag were co-created by the same person - Jefrey Huang, also known as Machi. Community members investigated and realised that for whatever reason Machi tries to distance himself from both projects, pretending they were never controlled by him, but it is easy to find Machi’s involvement in both projects.
Some members of the community believe, Swag was created as a backdoor to Cream, so Machi and his associates can suck out all the deposited coins at any moment. Probably they will not do it all at once, because that would be blatant scam, but they are slowly sucking out funds. 4 millions USD were sucked out before this vulnerability was described, and then on the day additional 2 millions were sucked out.
For the benefit of the platform the scam needs to be exposed and Swag collateral ratio changed to 0%.
Problem is, that since Machi and people associated with both projects control most of the coins, so they basically control Cream DAO. Obviously they control also Swag DAO. They just within an hour unlocked significant amount of locked tokens, supposedly by decision of the DAO (themselves).
We as a community don’t stand a chance to fix this vulnerability, becasue we always get outvoted. Luckily some of the whale accounts are now known, so we know when the team and their associates are voting.
And now the most important part.
CEO of Swag made couple of promises.
He understands that he could single-handedly destroy the whole platform and he understands that the community knows that.
But he wants to prove his intentions are fair and he is not willing to do that.
Those are quite high stakes and huge risk for the platform, but he made some specific promises that can be held accountable for. If we can’t remove Swag from Cream, we can at least monitor if the promises were delivered. If yes, then we can give the guy benefit of a doubt. If not, then we have to make sure this story is described in all the crypto outlets and Jefrey Huang, Sam and all the other people involved in this (including promoters like Wilson or Boxmining) are punished accodringly. Authorities in respectable countries should be notified, because this might turn out to be one of the biggest scams in crypto.
So the promises made by people behind Swag/Cream are as follows:
- Launch liquidity pool rewards on Cream (this one is already delivered)
- Get Swag listed on first tier CEX-es as a proof they are in this long term and actually want to spend money and effort on the project and not simply use it to drain funds (this is not deliverd yet)
- Bring the price back above 30 cents by the end of this month and support it there. 30 cents is important price for the project, because that’s where the price was before the alleged scam was discovered, then it started to go down to 5 cents. Swag is planning to do this by various means, including buybacks. Someone on their Discord took a printscreen as a proof they are planning to do this till the end of the month, so this promise is easiest to verify and if they fail to deliver it, then we know they were scammers.
- Pay back all the loans eventually (no specific timeline, so hard to verify this one).