Cryptomustar
Wednesday, May 18, 2022
  • Home
  • Altcoin
  • Bitcoin
  • Ethereum
  • Litecoin
  • Cryptocurrency
  • Blockchain
  • Regulation
  • Market
  • Prices
  • ICO
No Result
View All Result
  • Home
  • Altcoin
  • Bitcoin
  • Ethereum
  • Litecoin
  • Cryptocurrency
  • Blockchain
  • Regulation
  • Market
  • Prices
  • ICO
No Result
View All Result
Cryptomustar
No Result
View All Result
Home Cryptocurrency

Trust no one: Founders of once-$50 million Ethereum coin “rug pull” users

by admin
October 11, 2020
in Cryptocurrency
0
Trust no one: Founders of once-$50 million Ethereum coin “rug pull” users
0
SHARES
5
VIEWS
Share on FacebookShare on Twitter


While the Ethereum decentralized finance space has cooled down dramatically since the euphoria seen in August and September, the space is still rife with scammers. In fact, relative to the number of legitimate projects launching, it appears that there are a large number of scams.

This much was made clear when a DeFi project that was live for nearly two months “rug pulled” its users despite building an aura of trust over many months. The coin pertaining to this project has since plunged by 99 percent, shocking many investors.

RELATED POSTS

AQX Launches its New DeFi Platform in Open Beta on 18th May 2022

Nasdaq decline equates to Dot-Com crash. How does it compare to crypto?

A two-month-old DeFi project plays the long game, scams users

Most Ethereum DeFi scams that have taken place over the past few months have taken place over the span of a few days.

Normally, a malicious actor would launch smart contracts with the ability to mint an infinite number of tokens or to steal deposits, generate hype through Twitter and sites like 4chan, then quickly “pull the rug” by using their exploit. This process often took mere hours—in September, a blockchain analyst recorded a single wallet doing this multiple times a single day to make hundreds of ETH.

This means that many investors have become acclimated to stick with older projects, projects that have an established community, product, and vision.

CoinBreeder/CBDAO, whose token was BREE, was one such project.

CoinBreeder was a multi-faceted Ethereum project that included features related to non-fungible tokens (NFTs) and staking.

For some reason, the project saw immediate success: just weeks after it launched in early August, BREE tokens had an aggregate market capitalization of $50 million — quite the feat for a project that just launched. There was a great deal of Ethereum token traders on Twitter commenting on the project, noting that they thought it was a potentially good bet.

But just this past week, this project became a scam.

Wow, $BREE just rugged and exit scammed after acquiring NIFTYMOJI nine days ago.

RIP to my cute 17 x $MOJI and so long $MEXP.

You’ll forever be remembered by this looping gif. https://t.co/vyBpM3BpUA

— fomosaurus ? (@fomosaurus) October 8, 2020

As one Twitter user pointed out, an admin wallet exploited a hidden backdoor in a BREE contract, allowing them to dump 50,000 coins on the open market. The return of the sale was only approximately 200 ETH and one million worth of ETH generated in a presale has been counted as good as gone. The project’s website, Twitter, and Telegrams have been pulled.

The price of BREE has since dumped to a few cents from its $50 all-time high.

Fortunately, the admin address that executed this scam purportedly has connected his address to addresses affiliated with top exchanges Bittrex and Binance. This may allow law enforcement to find the individual(s) behind this scam.

It’s worth noting that CBDAO is far from dead. There are some users that are trying to reclaim what there is left to try and turn the project into a success.

Whatever the case, this shows that even longer-standing Ethereum DeFi coins may not be as legitimate as they claim to be.

$BREE just rugged after months. A lot of big investors with 6 and 7 figures in it.
Trust no one. pic.twitter.com/ZIInNG6jyK

— ManilaMax (@ManilaMax1) October 8, 2020

Far from the only scam

BREE is only one of many DeFi-related scams that have taken place in the past few months.

As reported by CryptoSlate, there was one “yield farm” that managed to drain thousands of dollars worth of Uniswap’s UNI from its users.

There have also been other longer-standing projects such as HatchDAO that have scammed their users after building up an aura of trust over many weeks.

Like what you see? Subscribe for daily updates.





Source link

Tags: CoinEthereumfoundersmilliononce50PullRugTrustUsers
ShareTweetShare

Related Posts

AQX Launches its New DeFi Platform in Open Beta on 18th May 2022

AQX Launches its New DeFi Platform in Open Beta on 18th May 2022

by admin
May 18, 2022
0

There was an increase in volatility in crypto markets where most cryptocurrencies underwent double-digit percentage declines recently. However, like many...

Nasdaq decline equates to Dot-Com crash. How does it compare to crypto?

Nasdaq decline equates to Dot-Com crash. How does it compare to crypto?

by admin
May 17, 2022
0

Analysis shows that Nasdaq has lost over $7 trillion in value amid the market sell-off in 2022.Quantum Economics founder...

GameFi Slides on Macro Trends but Individual Projects Shine | April Monthly Report

GameFi Slides on Macro Trends but Individual Projects Shine | April Monthly Report

by admin
May 17, 2022
0

In April, GameFi game projects grew from 1,406 to 1,479, a monthly increase of 5.2%, with growth concentrated in...

Another algorithmic stablecoin, DEI, loses peg

Another algorithmic stablecoin, DEI, loses peg

by admin
May 17, 2022
0

Another algorithmic stablecoin from Deus Finance, DEI, fell to as low as 54 cents on Monday, continuing what has...

Terra ecosystem to vote on a fork to create Luna Classic and Luna Core

Terra ecosystem to vote on a fork to create Luna Classic and Luna Core

by admin
May 17, 2022
0

Luna Foundation Guard CEO, Do Kwon, has released a new proposal entitled “Terra Ecosystem Revival Plan 2.” In it,...

POPULAR NEWS

4 Cryptocurrency that Blow Bitcoin Out of the Water

4 Cryptocurrency that Blow Bitcoin Out of the Water

September 25, 2020
Memoriae – Next Generation of Decentralized Cloud Storage Based on Blockchain

Memoriae – Next Generation of Decentralized Cloud Storage Based on Blockchain

July 1, 2021
Apollo CBDC: The CBDC Platform that can Power Economies

Apollo CBDC: The CBDC Platform that can Power Economies

October 6, 2020
Stratus: The Most Feature Rich Social Media Network

Stratus: The Most Feature Rich Social Media Network

September 9, 2020
Binance Coin (BNB) erupts above $270 as the whole Smart Chain ecosystem soars

Binance Coin (BNB) erupts above $270 as the whole Smart Chain ecosystem soars

February 19, 2021

EDITOR'S PICK

Bitcoin’s Relationship With Gold Is More Complicated Than It Looks

Bitcoin’s Relationship With Gold Is More Complicated Than It Looks

December 13, 2020
Crypto VC Firm Dragonfly Raising $500M for New Fund, Documents Show

Crypto VC Firm Dragonfly Raising $500M for New Fund, Documents Show

January 25, 2022
Crypto Sees $242M in Liquidations Within Hours Amid Russia-Ukraine Crisis

Crypto Sees $242M in Liquidations Within Hours Amid Russia-Ukraine Crisis

February 25, 2022
First Bitcoin Mag And Now LaBitConf? Why Does YouTube Keep Closing BTC Channels?

First Bitcoin Mag And Now LaBitConf? Why Does YouTube Keep Closing BTC Channels?

January 21, 2022

About

We publish a comprehensive news feed covering all news relevant to the crypto user, covering main industry news, politics and regulation as well as consumer-level “news you can use” (practical stuff), including handy DIY tips, links to useful tools, unbiased reviews and opinions revolving around cryptocurrency. Simple logic and real-world examples are preferred before technical jargon and personal rants.

Follow us

Categories

  • Altcoin
  • Bitcoin
  • Blockchain
  • Cryptocurrency
  • Ethereum
  • Litecoin
  • Market
  • Press Release
  • Regulation
  • Uncategorized

Recent Posts

  • ElonCoke (ELNCO) Announces Listing on PancakeSwap and Upcoming P2E Game
  • You won’t believe what cannabis company Melee Dose did with their Mutant Ape Yacht Club #4573.
  • Sylvester Stallone NFT “Golden Signature” Exclusive Edition Coming to OpenSea
  • Introducing Relation, A Multi-chain Social Graph Data Explorer On Web3
  • About Us
  • Privacy Policy
  • Contact Us

© 2020 cryptomustar.com

No Result
View All Result
  • Home
  • Altcoin
  • Bitcoin
  • Ethereum
  • Litecoin
  • Cryptocurrency
  • Blockchain
  • Regulation
  • Market
  • Prices
  • ICO

© 2020 cryptomustar.com

  • YAM v2YAM v2(YAMV2)$4.70-1.41%
  • yfBetayfBeta(YFBETA)$4.27-0.10%
  • IDLEIDLE(IDLE)$1.44-12.39%
  • WPP TokenWPP Token(WPP)$0.006826-3.49%
  • DSLA ProtocolDSLA Protocol(DSLA)$0.003681-6.85%
  • lympoLympo(LYM)$0.004392-4.43%
  • Werewolf CoinWerewolf Coin(WWC)$0.098082-2.58%
  • PolkaBridgePolkaBridge(PBR)$0.439784-6.92%
  • Dev ProtocolDev Protocol(DEV)$1.76-16.14%
  • EvidenZEvidenZ(BCDT)$0.122949-3.85%