Predict.fun: PREDICT airdrop criticized after $400K exploit: ‘Nothing but scam projects’

Binance-backed prediction market Predict.fun has been exploited, and nearly $400K has been drained from users’ accounts. Addressing the incident, the project attributed it to a third party. 

Our preliminary investigation suggests that our API documentation site, which is hosted by a third-party provider, may have been compromised, potentially affecting a small number of users over a short period of time.

The project said it will fully repay affected users. A post-mortem on the security exploit would follow soon, alongside mitigation to prevent future occurrences. 

An unverified report from security researcher SomaXBT claimed that the exploit happened in three waves. The first phase happened between October 14 and 15, affecting six victims who collectively lost $16.7K. On October 22, another six victims lost $125K during the second wave. 

The third wave, from the 27th of October, saw an extra 22 users lose $267.8K, bringing the total stolen funds to about $409.5K. 

Predict.fun volumes hit $400M

Predict.fun is a prediction market native to the BNB Chain, a bet made by Binance-backed YZi Labs in the booming segment. So far, the protocol has driven $400M in volume in the past 30 days, generating nearly $8M. 

This makes it third to Polymarket and Kalshi in terms of volume. 

The protocol debuted last December, so it’s less than a year old. To boost liquidity and consolidate market share, it acquired rival Probable and launched a user rewards campaign.

Users were rewarded with ‘Predict Points’ or PP, and they are redeemable for PREDICT tokens, the project’s native token. 

The project announced the token launch but will disclose details on how the PP-to-PREDICT token conversion ratio later on. However, a section of the community is already against the token launch and the amount allocated for the airdrop for early users. 

PREDICT’s supply will be capped at 1 billion tokens, with nearly 52% going to the ecosystem and community. For the Season One airdrop, a total of 70M tokens, or 7% of supply, will be issued.

And only 35% of this will be unlocked during the launch, translating to about 2.5% of the supply. The rest will be unlocked after 12 months. 

However, one user slammed, 

You get 35% of the 7% allocation—that works out to roughly 2.5% for the Season 1 airdrop! 😂 Honestly, these days it’s just nothing but scam projects.

Final Summary

• Predict.fun pledged to reimburse all victims in the $400K exploit. 
• The prediction market to launch its PREDICT token this month, as users slam the 2.4% supply allocation to season one airdrop.