Why Audits Are Not Always Reliable

At PumpX, we collaborate with three auditing companies (Honeypot.is, Go Plus, and Quick Intel), which provide initial security assessments and risk warnings for smart contracts. However, the results of these audits are not always guaranteed to be accurate due to several factors:

1. Complex Smart Contracts: Smart contract code can be highly intricate, and automated tools may struggle to understand complex logic or dynamic behaviors during analysis. Some contracts may use unique programming techniques that alter their behavior, making it difficult for auditors to predict potential issues, particularly during execution.

2. New Attack Methods and Vulnerabilities: The blockchain and cryptocurrency space is constantly evolving, introducing new attack techniques and vulnerabilities. Auditing tools may not always keep up with the latest security threats, particularly those that are not yet widely recognized, reducing their ability to identify emerging risks.

3. Audit Evasion Strategies: Some developers deliberately write code to evade automated auditing tools, making it harder to detect potential malicious activities. For example, they may hide or delay harmful actions to mislead auditors, resulting in seemingly safe audit reports, while the actual operations may still be risky.

4. Upgradable Smart Contracts: Certain contracts allow for changes to their logic after deployment via management or governance processes. As a result, even if a contract passes an audit, future updates could introduce new vulnerabilities or malicious behavior. Auditing tools typically analyze only the current version of the code and cannot anticipate future modifications.

5. Deceptive Honeypot Mechanisms: A honeypot is a contract designed to deceive users into locking their funds after a trade. Developers can use complex code or specific logic to make these mechanisms appear normal under typical conditions, but activate only during specific interactions. Auditing tools may miss these hidden triggers, leading to inaccurate assessments.

6. Time-Locked or Delayed Operations: Some malicious contracts employ time-locks or delays to trigger harmful actions only after certain conditions are met. These strategies are difficult for static analysis tools to detect.

As a result, it is not uncommon for a token's risk alert to change suddenly from green to red. Additionally, issues like delayed honeypot mechanisms are currently undetectable by any auditing company. PumpX does not verify or take responsibility for the quality of third-party audits. Always conduct thorough research before purchasing any token!