Analyzing HBAR Token Contracts for Risk $HFUD $KARATE $LILSAUCE

Token Creation on Hedera HBAR Chain
EDIT: After further analysis of the $lilsauce contract and a review of the findings with the official @hbar team on X.com, it is almost certain to be a SCAM! It is not recommended to participate in anything related to $lilsauce. x.com@darkhbarcom has been notified! Read more below…
During token creation on the HBAR network, the creator is given an opportunity to create “keys” that allow them to change and modify the token, including increasing supply or even deleting everything. You may have heard the term “immutable” before. Immutable contracts have no keys that allow changes. Below you will find an example of an immutable token, $hfud. And we will analyze 2 more, $karate and $lilsauce.
If a contract is immutable, there are still risks!
The team may still be able to rug or abandon the project. In some cases, such as $hfud, some of the risks are removed with LP locking contracts, but even then, there are still risks. I have NOT thoroughly researched their LP locking contracts!!!
Also… Just because a project uses admin and supply keys that are filled with risk, it doesn’t necessarily mean they have bad intentions. I believe $karate has good intentions and fully intends to keep things fair for all token holders, but the contract allows an infinite supply.
In the realm of Hedera token contracts, the concept of keys is fundamental to understanding the governance and control mechanisms over tokens.
- Keys: Hedera uses cryptographic keys to dictate who can perform various administrative actions on a token. Similar to your account private keys, but different, these keys can include:
- Admin Key: Allows for the modification of token properties like name, symbol, or treasury account.
- Metadata Key: Allows for the modification of metadata.
- Feeschedule Key: Allows for modifying the royalties.
- Supply Key: Controls the ability to mint or burn tokens, affecting the total supply.
- KYC Key: Manages Know Your Customer requirements for token holders.
- Freeze Key: Can freeze accounts from transacting with the token.
- Wipe Key: Enables the removal of tokens from any account.
- Pause Key: Temporarily halts all token transactions.
The configuration of these keys determines the degree of decentralization and security of the token. If a key is set to null or none, that function cannot be performed by anyone, effectively locking those capabilities. Immutable tokens have no keys!
Analysis of Three Hedera Token Contracts $HFUD $Karate $lilsauce
To begin… Let’s start with the least risk contract, but 🫣 possibly the most risky project. 😜
$HFUD Xtwitter@HFUDINFO https://hfud.info
I learned about this project during their NFT launch. I loved the idea and the artwork. I have no idea who the team is behind it, but @darkhbarcom of darkhbar.com is where I first heard about it. Not long afterwards, @Natnatx007 had an $hfud giveaway during an X Spaces event. During the meeting she stated she knew the $hfud team which gave me a little more confidence. lol. I don’t know @Natnatx007 either… DYOR. Don’t blame me if you buy and it almost goes to zero.


The $HFUD Contract: 0.0.7194475
This is an example of an immutable contract. The supply is fixed. It won’t change, no matter what. You will forever have your coins and your percentage of the total 🙂
To view this information, go to hashscan and search the contract address 0.0.7194475. Scroll down the page and look for the heading “Token Keys.”




I know for a fact, you see Admin Key: None if you look at hashscan today or next year or in 20 years. There is no possible way, assuming HBAR is secure, that it will ever change. It may be redesigned on the frontend to say Null someday, but the fact remains, that Fungible Token HFUD (HFUD) is immutable. It will not change.
Now… The FUD…
$karate
Sorry… No fudding just yet.
Karate is without a doubt my favorite token in all of crypto. The opportunity to own a combat sports organization in such an early stage happens once, maybe twice (UFC) in a lifetime. I personally was not one of the chosen few who had an early investment opportunity in UFC. Most weren’t. Karate Combat has given EVERYONE the opportunity.
Karate Combat coins have an admin key and a supply key with infinite max supply. Any other coin in the world, I would run.


It looks as though the contract has control of the admin key and supply key. When trying to research the contract code, it’s all bytecode without any source verification. Again. Any other coin in the world, I would run.


But… This is not your typical degen crypto project. Karate.com, Karate Combat IP, $karate coins, and everything the team is working hard to build is similar to UFC. Potentially bigger as they branch out with the $Up Layer 2 network. The smart contracts being used are IP, intellectual property. They also belong to the holders. Not only do I now understand why they remain closed source, I very much hope they remain that way!
If I had to guess, the contract is designed to last forever, but obviously it can never hit infinity, it just needs that for the code to fully function??? I don’t really know the truth. Kinda want to, but even then, I won’t tell you what the code does. It’s MY intellectual property. I am a proud owner of $karate.
Fear, Uncertainty, Doubt…
$lilsauce @lilsauce
I like the team. I have spoke back and forth with them on X and they kindly respond to tough questions. I bought 3 of the NFTs because I liked the artwork and DarkHbar.com recommended them. I would not be able to find them to get you your money back, or mine, but Kabila labels them as Doxed. I like the artwork. I like their hard work… But the contract is flawed and this is VERY HIGH RISK!!! Let me explain so you will know what to look for with other projects.
Upon first glance everything looks great, the supply is shown to max out at 15,000,000. Certainly better than “infinite.” The team also claims it is fixed, but we will analyze below.


So next we begin digging into the admin and supply keys.


As we can see there is an admin key, fee schedule key, supply key, and meta data key. If we look at the supply key we might immediately think, it’s all zeros it can’t be used. But that’s not the case. A contract with an admin key that has an existing supply key, can change the supply key. If there was no supply key, then the admin key wouldn’t be able to update it, but the zeroed out supply key is mute and can be changed with the admin key.
From here I contacted the lilsauce team on X.com. I will leave the conversation below. If you have any questions, just ask X@Bitsycoin. I’m not recommending buying anything else related to lilsauce until this is fully addressed. This is crypto… Trust is not necessary when using Bitcoin. It is all on chain 🙂
Long story short… “””I can understand how I could write a script on my computer to generate an admin key and then delete everything I would need to access it. I can do that, no problem. How do I prove it to others? I can’t. And they would be foolish to just believe me.”””




















Beyond the Contract
While understanding how keys work in Hedera token contracts provides insight into the governance and security of a token, it’s crucial to recognize that:
- Rug Pulls: Even with secure contracts, if the team behind the token decides to abandon the project or engage in fraudulent activities, investors could be left with worthless tokens.
- Abandonment Risk: A project might look promising, but without ongoing development or support, its value could plummet, regardless of how its contract is structured.
In summary, while the structure of a token contract on Hedera can offer significant insights into its operational security and potential risks, it is but one piece of the puzzle. Investors should conduct thorough due diligence, looking into the project’s team, roadmap, community engagement, and broader market conditions before making investment decisions. Remember, a contract not inherently risky by design does not necessarily shield against human elements like mismanagement or deceit.
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