Uniswap Reports Phishing Scam, As UNI Records 10% Profit In 24 Hours

Uniswap (UNI) has been moving against the general sentiment in the market. As Bitcoin, Ethereum, and larger cryptocurrencies give out their last week’s gains, UNI’s price remains impervious and maintains bullish momentum.

Related Reading | TA: Ethereum Breakdown Looks like the Real Deal, $1K Is The Key

At the time of writing, Uniswap (UNI) trades at $5.7% and records a 10% profit in the past 7 days and a 32% profit over the last month. In smaller timeframes, UNI’s price has begun to weaken as it displays a 3% loss in the past day.

UNI’s price trends to the downside on the 4-hour chart. Source: UNIUSDT Tradingview

Yesterday, liquidity providers on the platform suffered millions of dollars in losses as a result of a phishing scam. Via its official Twitter handle, Uniswap Labs confirmed the attack and called it a “problem far too common in crypto today”.

The company addressed the situation as there were ongoing rumors about a potential exploit to the Uniswap v3 platform. In that sense, they confirmed the phishing attack but claimed no exploit took place.

As they explained, liquidity providers on the platform received “malicious tokens” via airdrops which pointed them to a “malicious interface”. Users fell for this phishing attack because they were promised a chance to swap the airdropped tokens for UNI. The company explained:

This generated a setApprovalForAll transaction, which, if approved by the user in their wallet, gave the attacker the ability to redeem all of the user’s Uniswap v3 LP tokens for their full underlying value.

The company explained that users must consider potential phishing attacks from all those domain names not associated with unswap.org. In response to probable future measures to be adopted to mitigate these attacks, the creator of Uniswap Hayden Adams said:

In addition to education, I think there is a ton that can be done at the UI layer (wallets and other interfaces) to protect users. Example: by default, hide any unknown token with a URL in the name.

Why Uniswap Is Moving Against The Trend

Despite the attacks, the sentiment in the crypto market, and the UNI tokens entering the market, UNI’s price was able to maintain its weekly and monthly gains. The persistent bullish price action could be driven by a series of partnerships and acquisitions.

Uniswap Labs announced the purchase of non-fungible token (NFT) marketplace aggregator Genie. This will enable the platform to offer trading services for these digital assets.

In addition, developers will be able to leverage a new API to build applications on Uniswap and offer ERC-20, NFTs, and cryptocurrency trading. Thus, making the protocol a “comprehensive platform for users and builders in Web3.

Related Reading | Back Into Crab Mode, Bitcoin Bullish Potential Capped For The Coming Months?

The acquisition included a future USDC airdrop to all users that traded in the platform before April 15, 2022, and GENIE NFT holders. This has potentially boosted UNI’s trading volume and demand which provided the token with more resilience against the persistent bearish price action across the crypto market.