Memecoins
$300 million meme coin full of potential security flaws
Investors bought Mog Coin (MOG) despite major security flaws in the underlying smart contract code.
According to a security audit by ChatGPT, the owner of the MOG smart contract used the “Ownable” feature in the meme coin’s code. This allows the distributor to opt out and transfer ownership of the token in an instant.
Additionally, the code distributor can also set and change token fees up to 50%, for ChatGPT. This gives the owner “a lot of flexibility, which can be abused,” the AI analysis shows. The owner can also exempt specific addresses from fees and transaction limits. ChatGPT added:
“This can be used to create preferential treatment or for malicious purposes.”
The smart contract code also has the “startTrading” function. This allows the owner to directly enable or disable trading of the MOG token, potentially preventing traders from executing their trades.
Furthermore, the ChatGPT analysis found that the contract distributor can instantly exchange tokens with Ethereum (ET) and even withdraw meme coin liquidity.
According to the analysis, MOG is a highly centralized token and its owner has too much control over the underlying code. This makes the meme coin a precarious investment since the smart contract distributor can manage the liquidity of the asset, manually withdraw the tokens, and manually exchange the tokens for ETH and withdraw them.
This places MOG, potentially, in the fraud category.
Despite all the security flaws, MOG has emerged as the best performer among the top 500 cryptocurrencies with a 45% price rally. THE memetic currency AND trade at $0.0000008286 at the time of writing. The asset’s market capitalization stands at $323 million with a circulating supply of 390 trillion MOG tokens.
Disclaimer: This analysis is not definitive proof that MOG may be a fraudulent asset, but it highlights the risks inherent in coding blockchain algorithms related to security flaws.