This announcement is to explain our decision with how we will move on from the KAPEX exploit.
We have such exciting releases coming up with EdYN and some other surprises. It is such a shame that we had to suffer this exploit, but what matters most is that we learn from this and move on from it in a positive way.
If you have not read what happened you can see our post from earlier in the month here-
- There was a loss of $21,561.84. (dollar value at the time 78.83 BNB)
- We have no way of recovering these funds. Despite reporting to Binance, the best that could be hoped for is that the funds will be locked from moving, but unless the hacker decides to return them, they are permanently lost.
- We are due to announce what happens with the future roadmap of our projects over the coming months.
- This exploit has an impact on our plans.
Our realistic options:
We see the options as,
- Re-deploy KAPEX
- Pay out loss (~$21k to holders)
- Swallow KAPEX in the ecosystem
- Terminate KAPEX (do nothing)
Each of the options has different benefits to the overall ecosystem. In this circumstance we have conflicting interests within our community (KAPEX vs KODA) and also within the business. We must acknowledge the most affected community members as being the KAPEX holders, we are very aware that there is huge overlap between the two.
We feel that although this exploit was out of our control, it was however as a result of something we chose to do many months ago. Had the decision to make a vanity address not have happened, the exploit could not have been possible.
So, we therefore confirm, Summit as a community driven force therefore accepts liability for the funds lost.
With this in mind we will put up the loss amount ($21,561.84) as a company.
Note: This will come from other funds, not from token sales or existing liquidity pools.
We are lucky in a way that the loss isn’t a huge amount, had this been the size of KODA for example our options would be very limited.
So, it then comes down to how we deliver these funds.
Here we will explain the 4 options above.
1. Re-deploy KAPEX. This is perhaps the most obvious option initially, however there is a lot more to this than it seems.
To have KAPEX in the same state it was before the exploit, all the following parts must be carried out.
- Redeploy contract (V2)- (Can be achieved relatively cheaply on its own).
- Airdrop wallet holders KAPEX tokens, OR, set up a new claim page for wallet holders to get the V2 tokens, which is a significant cost.
- Redeploy and fill presale contract to match existing state. This involves a significant amount of work as different holders have claimed different amounts.
Note these costs are in addition to replacing the liquidity pool of ~$21k.
- Pay out loss to holders. This was easily the second thought.
This would mean splitting the ~$21k amongst KAPEX holders. However by nature of the cryptocurrency set up, this would mean holders receive far less than they perhaps expected.
Liquidating in this way would mean that holders get but a fraction of their wallet + unclaimed balance.
- Swallow KAPEX in the ecosystem (KAPEX Merge). This method would involve paying KAPEX holders a level of KODA (rate TBC). It could be considered a hybrid option.
This will deflate the KODA token a little, but to combat these effects we would inject the ~$21k in the form of buy back and burn.
This would unite all holders as KODA holders and KAPEX would be completely discontinued.
- Do nothing. Doing nothing is always a consideration in any business opportunity. In this case it would be that KAPEX is left as discontinued. No reimbursement to the community, and we accept the fact that the hackers won.
We have decided to opt for option 3, to swallow KAPEX in the ecosystem.
This will take some time to deliver, however we believe that this will have the most positive impact on the overall ecosystem, restores trust to our community and means we can focus on a single token.
Note: This will include KAPEX held in wallets and what was due to be claimed (from the running presale) it excludes 1144 claims (for 1144 see section below). We will be calculating balances from a snapshot when the exploit happened, any trading after this time will not be included, we are looking on a case by case basis at those who purchased KAPEX after the exploit as to whether they will be compensated and how.
Option 1 – We consider non viable, not only is this by far the most costly (it will have a significant impact on EdYN deliverance).
Since the exploit we have spent a lot of time looking at our ever changing roadmap.
KAPEX was initially set up to be the transactable token, usable in the ecosystem, for example if it was to be part of any play-to-earn part of our NFT projects. This plan is fairly aged, (KAPEX was made part of the plans just 2 months after KODA’s launch), KAPEX didn’t get the trajectory we initially anticipated, and gave us very little community growth.
It is clear now that we actually would benefit more from focusing our efforts on a single token. Our original token, KODA.
This means all future marketing efforts and utility would be pushed into KODA only, and not split between two conflicting pressures. Looking at the life of KODA there is a clear drop in interest when the KAPEX sale began, we understand there was confusion from community and team alike as to where investors should be placing their holdings.
Our chosen way forward resets this, and puts focus on our original centre stone, KODA.
Option 2 – We also consider it non-viable, but it did come out our second choice. This would give back so little to the KAPEX holders we cannot see it being considered positive by the masses.
Option 3 – Chosen, In process.
Option 4 – Not a chance. For us to do nothing is just not part of our makeup. Since the inception we have tried our best to protect our community against scammers and the like. In this instance we have been scammed. It has affected us and our community, by replacing the funds lost in what we believe to be the best way, we hope everyone can see that we are trying to do is the best for the overall community.
We are aware that this move will not satisfy everyone, however we do hope that the majority can see the logic and understand this is the best long term move.
There will be ~$21k worth of buys going into KODA in the short term, and we are more determined than ever to provide value to holders long term. We believe that EdYN really will blow the roof, and the link in with ByeBanX and now KODA is intended to increase the longer term demand for the KODA token significantly.
1144 will be compensated in a different way, through KODA trading volume. This will be distributed in the form of BNB to the current 1144 members for the foreseeable future and is likely to be rolled out with our rebrand.
We are due to announce our re-brand, KODA improvements, changes, and some juicy updates, with this we will deliver the KAPEX merge. Bear with us, and when our time comes, it will be magical.
To confirm we no longer support KAPEX, and with this the website and all mentions of KAPEX will be phased out.
James and the team.
In addition, it was possible for the company to pull the last bit of KAPEX liquidity, this was done last week. The decision made was based on the following,
As KAPEX was paired with KODA, the hacker was able to sell the KODA, to the tune of ~$5.7k we decided to use the remaining LPS to buy back and burn to at least soften the blow to the KODA price.
October 19th 2022
Removal of remaining accessible liquidity-