We recently suffered a security leak involving the LTD Token. In this statement, we will clarify the cause and announce the solutions to the incident that happened on December 17, 2021.
Unexpected Incident
On December 17, 2021, our system experienced serious problems leading to high volatility in the price of LTD tokens. The team immediately took necessary actions, including temporarily suspending the LiveTrade DApp and contacting affiliate CEX and security partners for prompt solutions. As we fully understand the negative impacts of this cyberattack on our users, we sincerely apologize to our users as well as thank you for your understanding and support. We believe that it is our responsibility to provide detailed explanations and remedies to ensure the best benefits for our community.
Reports showed that the incident has poured over 34 million LTD tokens into the market, amongst which are 25 million LTD originally allocated for private sale but have not been sold. The hacker swapped the whole amount to BUSD and BNB, then transferred them to a Kucoin account. We are trying to reach Kucoin support to identify the suspect with the address: 0x9860c981952e75A7562EFB1f16c72a7C1D1C570d.
Scope of impacts
The incident causes LTD liquidity on Binance Smart Chain to deplete, and the price of LTD, therefore, decreased sharply.
We have also examined all LTD-related smart contracts to ensure safety and concluded that only BEP-20 LTD tokens were affected. The team, however, decided to perform extra technical measurement to the smart contracts on both chains to ensure solid security in the future.
Our Optimal Solutions
With consultancy and assistance from security experts, LiveTrade has come up with the following solutions:
* What we have done:
1. Changed all wallet/ treasury addresses and ownership. Thus, we were able to get all the remaining LTD under the team’s control. Unfortunately, a lot of people took advantage of the situation and purchased LTD at very low prices.
2. Examined the security status of the ecosystem and team-controlled wallets, ensuring top-high security for new wallets.
3. Re-evaluated existing security procedures to check up, manage and maintain the internal system;
* What you can expect:
1. New smart contracts for LTD token and NFT: To avoid any unforeseeable risks, we will deploy new smart contracts for LTD token on both Binance Smart Chain and KardiaChain which will include some additional features. However, the new addresses will only be published as soon as we complete the audit process. The new contracts are scheduled to be deployed on February 10, 2021.
We will also re-deploy the Platinum NFTs on KardiaChain with detailed guidance for owners to be announced in upcoming notice. Nevertheless, KardiaChain-based members can rest assured that their ownership and privileges remain safe and unchanged.
A few notes to keep in mind:
* Staking features (Farms and Pools) will be temporarily suspended until we completely weather the situation.
* Migration ratio: Holders of the obsolete $LTD will be able to migrate to the new one with specific ratio:
- For Binance Smart Chain and KardiaChain-based holders, please fill in this form before January 31, 2021. The expected ratio for LTD held in each wallet before the attack is 1:1. For tokens traded after the time of incident, a specific conversion ratio will be determined case by case based on the information provided by each user. Please be advised that this process will take time, but not exceeding 30 days from the date we receive your request. The migration process shall start very soon after the deployment of the new contracts. Details will be announced in upcoming notices.
- No migration rate is applied to ONUS users. LTD on ONUS will remain unchanged and will be automatically converted to the new LTD when users transfer out. All LTDs pending transfer-in transactions on ONUS will be canceled and the pending transfer-in amount shall comply with a migration ratio to be announced later.
- Users are advised not to perform any transactions related to LTD from the time of submission as it may affect the maximum amount of tokens you can migrate.
* Initial price will be based on the exchange rate on ONUS at the time the liquidity adding takes place. Liquidity will be added gradually to ensure token price’s stability.
2. Token buyback, burn & our commitments
Just a quick comparison for everyone to have a better understanding of what we’ve been doing. According to the original tokenomics and release schedule, in mid of December 2021, there would have been a total number of over 112 million LTD in circulation, of which the core team’s vested holding is 5 million LTD.
In fact, before the incident, there were only around 58 million LTD in circulation – just half of the theoretical number as we have been continuously buying back from the market in an effort to reduce the circulating supply. The incident increased the number to 92 million at the time of writing – still less than 75% of the expected circulating supply.
As an effort to make things right, we have decided that, right after the new token deployment, we will:
- Burn 16 million LTD tokens that we bought back from the market in an effort to reduce the circulating supply;
- Burn all of the tokens that have been unlocked for the team from the TGE, equivalent to 5 million LTD tokens. We will perform the burn events and announce the tx hashes later right after deploying the new token.
- Continue to burn all the tokens that are allocated for the core team in the year of 2022, particularly approximately 6.8 million LTD will be burned each quarter. In sum, the total burned amount will be equal to 32.14% of the team’s allocation. This is our movement to take responsibility and fulfill our commitment to the community.
These actions are the reimbursement for the unintentionally released amount and will reduce the total supply of LTD to 475 million by the generation of the new token and to 448 million by the end of 2022.
The table below illustrates the comparison between LTD figures in theory calculated based on the tokenomics, before and after the incident, and after the planned burn events.
Calculation unit: LTD token
| Based on tokenomics | Actual figures before the incident | Figures after the incident | Figures after the planned burn events | |
| Total supply | 500,000,000 | 495,987,575 | 495,987,575 | ~448,000,000 |
| Circulating supply | ~112,000,000 | ~58,000,000 | ~92,000,000 | ~71,000,000 |
| Team’s total allocation | 100,000,000 | 100,000,000 | 100,000,000 | ~67,857,143 |
| Team’s vested amount | 5,000,000 | 5,000,000 | 5,000,000 | 0 (and will remain 0 for 2022) |
The number will continue to decrease after we apply the migration ratio. Furthermore, we will continuously perform buyback and burning activities during our operation.
3. Increase the number of joint projects to share benefits.
With the proven track record of successful DIPO projects, in terms of financial, such as HeroesTD, Space Crypto, ONUS (formerly VIDB), KAI, etc. we are confident that the privileges that we have been offering to our users will somehow lessen the impacts that the incident might have caused. And we will work to bring more of those opportunities to our users.
We are fully aware that our solutions may not be optimal for all of our users, but this is the best option that we have, considering all the key factors, and most importantly, giving the project a path to grow in the long term.
In the meantime, users are advised to:
- Completely remove your liquidity, your staked LTD and continue to restrain from staking LTD into pools and farms.
- Follow our official Twitter channel @livetrade_io to receive the latest updates as well as migration instructions.
At last, although this is an unwanted incident that none of us has ever expected, this is definitely a lesson for the team to implement extra security measurements and contingency plans. Due to the incident, our development roadmap is being affected and some of the products and features are being pushed behind schedule. We sincerely apologize for any inconvenience to the community and please be assured that LiveTrade will quickly accelerate our work to keep up with the market and fulfill our commitments with users.
We highly appreciate our partners ONUS and Verichains for their dedicated support. We would also express our gratitude to long-term holders who have been with us during difficult times and we are committed to quickly implementing the proposed measures to not only get everything back to normal but also take this as an opportunity to grow faster.
Sincerely yours,
The LiveTrade Team
