In a recent security audit conducted by ChatGPT, significant centralization vulnerabilities were identified within the Tomwifhat (TWIF) memecoin, which operates on both the Binance Smart Chain (BSC) and Ethereum smart contract platforms.

Following the surge of dogwifhat (WIF) in late December 2023, a trend of fraudulent memecoins featuring a hat theme emerged, raising concerns within the crypto community.

ChatGPT's analysis of the TWIF smart contract revealed the use of modifiers such as "onlyOwner," "transferOwnership," "renounceOwnership," and "claimStuckTokens" in the token's code. These modifiers grant the owner extensive control over the token, including the ability to redirect and freeze tokens. Additionally, the owner can claim coins inadvertently sent to the contract, posing significant centralization risks.

The audit emphasized the potential for malicious use of these capabilities, highlighting the heightened risk of a rugpull—a scenario where the owner abruptly withdraws liquidity from the token, causing investors to suffer significant losses.

Furthermore, Coinsult's security audit noted the absence of mint, blacklist, and fee-setting functions in the TWIF contract. Additionally, the token lacks a honeypot feature, which prevents users from selling their assets—a common safeguard against manipulation.

Despite accumulating a total market capitalization of $7.7 million, according to GeckoTerminal, TWIF's daily trading volume remains relatively low at $26,200. This disparity raises concerns about the token's liquidity and investor interest.

Ultimately, the reliability of TWIF's contract hinges largely on its owner, given the centralized nature of the token. Investors are advised to exercise caution and conduct thorough research before investing in meme coins, particularly those with single-owner designs that pose inherent centralization risks.