Beanstalk Farms Cryptocurrency Collapses After $182M Hack

    Photo: Getty Images [via Business Insider]

    The Facts

    • Hackers targeted a decentralized finance (DeFi) project called Beanstalk Farms on Sun. and made off with roughly $80M in tokens, causing the project to lose its $182M in total value locked.

    • Beanstalk Farms, which is built on the ethereum blockchain, includes a stablecoin called "the bean" that was supposed to help balance the supply and demand of different cryptocurrency assets.

    The Spin

    Narrative A

    When it comes to DeFi, the buck stops nowhere; there is zero accountability when these ventures fail. The anonymous "founders" point to flaws in the open-source code and hide behind the claim that the project is an "experiment," not a "business."

    Narrative B

    The fact that most DeFi and crypto projects are open-source means that any vulnerabilities can be quickly spotted and exploited by bad actors. On the bright side, though, this has prompted a security arms race as platforms and protocols rush to secure the top talent to protect their networks.

    Narrative C

    The irony here is that even so-called "stablecoins" that are meant to help stabilize the inherent volatility of new crypto and DeFi projects are themselves subject to attack and theft. DeFi is dangerous and regulators must step up to protect consumers.

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