EtherDelta is quickly becoming one of the go-to solutions when it comes to exchanging ERC20 tokens. In fact, there is no token that can’t theoretically be traded on this platform. Unfortunately, the protocol was targeted by hackers a few days ago, in the form of a malicious code injection. Thousands of dollars worth of cryptocurrency was stolen in the process. This attack vector has been fixed already, which is a good sign.
EtherDelta “Hack” is Pretty Disconcerting
No one will be surprised to learn EtherDelta has become one of the more popular ERC20 trading platforms in the world today. Most major exchanges hardly list any ERC20 tokens these days, although the more prominent ones can be found eventually if one has enough patience. For those users who can’t be bothered to wait, however, there is EtherDelta. It is a convenient solution which provides quite a few liquid markets these days.
What makes EtherDelta so appealing is how the entire “exchange” is one smart contract. This is a good example of how powerful such smart contracts can be and how they can be used for many different purposes. This clever use of smart contract technology removes the need for centralized servers. In fact, this is a true decentralized application, of which we can only hope to see more moving forward. That doesn’t mean EtherDelta is completely safe from hacks, however.
Although it is unclear exactly how much money was stolen, it appears several thousands of dollars worth of cryptocurrency is now in the hands of an unknown assailant. All of this goes to show cryptocurrency users should never trust custom token URLs related to EtherDelta or any other platform providing any functionality. The EtherDelta team has ensured such exploits can no longer be performed in the future, which is a positive turn of events. This does mean there is no trustless exchange model in existence right now, though, which is not entirely surprising.