A newly launched Solana app, SHDW, promised a form of privacy for user deposits. Early users reported that the app may be risky, locking funds with no recourse to withdrawals or customer support.
SHDW was a high-profile Solana app, promising to build on the privacy and veiling narrative. Observers identified early issues with the app, which presented itself as a privacy hub.
SHDW planned a token launch, inviting users to test the platform for private transfers and trading. However, early tests showed transfers were not really private. What is worse, Solana users could not withdraw the funds deposited for swapping.
The app also lacked customer support, despite having a contact form. No communication with support was possible. While the product had a high social media profile, its legitimacy remains unclear.
SHDW was heavily promoted by influencers
In the past day, SHDW was heavily promoted, expecting a token launch at 20:00 UTC. The new token is unrelated to the project with the same ticker, which also turned out to crash to almost zero.
The Shadow app promised to facilitate Solana trading by also using the Jupiter aggregator. Trades were supposed to be private and invisible to other players. The app promised a specialized privacy layer with optimized trade routing and no risk from front-running.
The app was announced and tested during the Solana privacy hackathon, further increasing its exposure.
However, the unshielding button of the app is not operational, and the initially deposited funds cannot be returned.
The platform also promises to launch X402 standard trading and allow privacy-verified swaps between AI agents. The SHDW app promises off-chain verification and settlement, allowing AI to AI or human to AI trading, without revealing identities.
At the initial launch, SHDW Swap and SHDW wallet were the only features going live. The X402 features, a prediction market, and a data screener may go live at a later date.
The SHDW wallet is available as a browser extension, though it is yet unverified for safety or potential exploits.
Solana bets on privacy after ZCash addition
The Solana network added ZCash as one of its first privacy features. The OmniBridge helped create tokenized ZEC on the Solana network.
The exact level of privacy on SHDW remains unknown until the app is tested. Veiling funds may keep them away from the Solana ecosystem, and users may not be able to access their liquidity or unshield the tokens.
Despite this, Solana continues with its privacy development. Solana already has a list of privacy projects, with more features to be added during the Solana Privacy Hackathon, running until January 30. The event offers a $100K prize pool for the best privacy projects. The hackathon boosted the SOL market price up to $141.23.
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Source: https://www.cryptopolitan.com/new-solana-privacy-app-shdw-suspected-for-locking-user-funds/
