ChatGPT’s security audit shows major centralization flaws in the Tomwifhat (TWIF) — a memecoin on the BNB Smart Chain (BSC) and Ethereum smart contract.
With the rise of dogwifhat (WIF) in late December 2023, the number of fraudulent memecoins with the hat theme has also increased.
According to the ChatGPT analysis, the owner of the TWIF smart contract used “onlyOwner,” “transferOwnership,” “renounceOwnership” and “claimStuckTokens” modifiers in the token’s code.
This makes TWIF a highly centralized asset since the owner can redirect and freeze tokens, according to ChatGPT. The audit shows that the deployer can also claim coins sent to the contract “accidentally.” ChatGPT added:
“This is risky if used maliciously.”
Moreover, due to the high level of control that the smart contract owner has, there is a high risk of a potential rugpull, per ChatGPT.
According to Coinsult’s security audit, the TWIF contract does not have mint, blacklist and setting fees functions. The owner cannot also use the token as a honeypot — a feature rendering users unable to sell their assets.
TWIF has already accumulated a total market cap of $7.7 million, per GeckoTerminal, and is currently trading at $0.0219 at the time of writing. However, its daily trading volume is sitting at only $26,200.
Ultimately, TWIF’s contract adheres to most of the standard ERC20 functionalities, its trustworthiness mostly depends on its owner due to the high level of control over the smart contract.
The single-owner design of the meme coin poses high centralization risks. In addition, it’s always highly suggested to do your own research before investing in cryptocurrencies, especially meme coins.
Disclaimer: This analysis is not definitive proof that TWIF could be a fraudulent asset, but it highlights the risks inherent to coding blockchain algorithms respective of security flaws.
