The Rug Pull With A Novel Strategy
By Sandeep Kasalkar
Scams of various kinds are not new to the world of finance and cryptocurrencies are no exception either. According to a report, the number of scams in 2021 increased because of a new scam known as rug pulls, in which the creators of a new cryptocurrency project—typically a new token—would abruptly abandon it by stealing all invested funds.
You can know by looking at some of the scams given below how much loss the investors have suffered due to the rug pull scam.
Stable Magnet Rug Pull
Over $27 million is thought to be the worth of the rug pulled from the Stable Magnet automated market maker (AMM).
The technique used a novel attack strategy that took use of the verification models for Etherscan and BscScam.
This attack allowed the stable magnet scammers to drain pairs and transfer tokens using a different code library than the one specified in the source code.
Luna Yield
The yield aggregator launched through Solpad vanished with nearly $6.7 million in various digital currencies.
The Terra ecosystem overwhelmingly supported Luna yield as an authentic project focused on aggregating and optimising yield farming for users.
However, three days after its initial DEX offering (IDO), Luna transferred funds to Tornado cash, making it impossible to track them down, and shut down its website.
Swipathefox project
This was a well-known rug pull because it was initiated by Sacramento Kings star guard De’Aaron Fox.
This was an NFT project that used the Ethereum blockchain to create 6000 unique fox-like characters that were supported by the OpenSea secondary marketplace.
The project, which included exclusive offers and giveaways, sparked a lot of interest.
Unfortunately, the project was abandoned, the website was shut down, the discord and social media pages were also removed, and the $1.5 million profit was lost.
Iron Finance
This one is more of a shambles. Whales with large positions in Iron Finance’s liquidity pools began swapping massive amounts of their rewards, quickly affecting the price of TITAN and causing others to sell off as well.
The value of TITAN dropped to zero in a short period of time. This drop impacted a number of notable investors, including Mark Cuban. The platform is still operational, but TITAN is no longer one of its assets.
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