Smart contract audit
Context: If smart contracts are not coded properly, they can be misused by malicious actors who can exploit the vulnerabilities and steal or manipulate digital assets. This can be particularly damaging for NFT users, who may lose valuable digital items or have their assets manipulated without their knowledge.
The audit of the Azuki and Beanz smart contracts evaluated 13 and 15 solidity files respectively. The algorithm, which considers 83 of the most impactful criteria, identified that both smart contract files have no significant vulnerabilities.
We also reviewed the Bobu smart contract and identified four low to medium-risk issues. It's important to note that while these issues exist, they do not pose a significant threat as they are not exploitable for malicious activity.
All audits are done using the open-source solidity contract auditor slither, which is released under the AGPLv3 License.
Wash trading audit
Context: Wash trading is a type of market manipulation where traders buy and sell the same NFTs to create the illusion of high trading volume and market activity. This allows traders to artificially inflate the price of an NFT, and then sell it at a higher price.
Our wash trading analysis of over 60,000 transactions between December 2022 and February 2023 found that, on average, 5.5% of Chiru Labs assets traded on the secondary market were involved in wash trading.
While this is a significant percentage, it is lower than the industry benchmark of 27.5% for the same time period.
The NFT space has always been notorious for its enormous amount of wash trading activity with reports that $32 billion out of $54 billion of NFT trading volume in 2022 was wash traded volume (Bitsrunch, Wash Trade Report 2023).
Twitter followers audit
Context: Web3 projects are known to have very high Twitter fake followers because they often use automated bots to promote their projects and create a false sense of popularity. This can be done through using services like “like farms”, where users pay for automated bots to like and retweet their content. Popular projects are also often targeted by bad actors who use bots to scam the community.
Our analysis of over 100,000 tweets using our bot detection algorithm revealed that 71.3% of them were classified as bots or fake accounts between December 2022 and February 2023. This represents a significantly high number of bots/fake accounts, especially compared to other web3 projects.
It's worth noting that this higher percentage can be attributed in part to Azuki's status as a major NFT project, which has made it a target for numerous bots attempting to scam the community.
However, even among similar projects, the percentage of fake accounts/bots typically does not exceed 33%.
The peer group analysis done by our partner moonpass.ai consists of projects like Doodles, Moonbirds, Bored Ape Yacht Club, Memeland, and Clone X - X Takashi Murakami.
Discord members audit
Context: Web3 projects often have a large number of automated bots and scripts designed to quickly join and post in these communities. These bots are often used to manipulate markets, spread disinformation and hype, and increase the visibility of the project. As a result, the communities can become flooded with fake accounts, making it difficult to identify genuine users and valid posts.
Our analysis of over 300,000 messages on the Azuki server reveals that the daily active user count ranges from 7% to 13% between December 2022 and February 2023.
Furthermore, approximately 43.8% of messages were identified as fake or spam, indicating the presence of fake accounts and bots. This percentage excludes native Discord bot messages set up by the server administrator.
It's worth noting that the percentage of fake accounts on Discord is higher than the peer group average, which typically hovers around 25%.
The scientific approach used by moonpass.ai was based on best practices from natural language processing (NLP), entity resolution, and deduplication algorithms.