Decentralized finance (DeFi) undertaking WhaleFarm joins the fast-growing listing of exit scams, hijacking tens of millions as its native token’s worth plummeted by virtually 100% in minutes.
Just lately, the undertaking’s nameless builders launched yield farming, a staking alternative for buyers to lock up their crypto in return for top rewards.
The undertaking witnessed progress as its native coin WhaleFarm Token surged in worth, buying and selling for $215 earlier than the intentional capitulation occurred.
The malicious maneuver occurred in minutes, because the scammers redeemed their token unexpectedly, inflicting its worth to plummet and leaving buyers with no time to drag out.
In the meantime, WhaleFarm deleted the undertaking’s Twitter account and the official Telegram group, pointing to a typical rug pull.
A well-liked crypto commentator said the obvious concerning the undertaking, pointing to it being a booby lure for unsuspecting buyers that finally value them greater than $2.3 million.
WhaleFarm Token is the newest rip-off to drag the rug on buyers. It is estimated they stole over $2.3 million.
– Absolutely nameless workforce
– Promised 7.2 million % in returns
– The token is now down -99.99%
– Twitter web page deactivated
– Telegram group deleted pic.twitter.com/Ye6CZ9HgUt
— Mr. Whale (@CryptoWhale) June 30, 2021
Whereas providing quite a few staking choices, together with Bitcoin (BTC), Ethereum (ETH), Binance USD (BUSD), Binance Coin (BNB), Tether (USDTusdt), Chainlink (LINK), Cardano (ADA) and Polkadot (DOT), the undertaking promised to earn as much as unrealistically excessive 7,217,848% annual share yield (APY).
A majority of these exit scams primarily occur within the decentralized finance (DeFi) ecosystem and largely on decentralized exchanges (DEXs), the place malicious people appearing as builders listing tokens and pair them with main cryptocurrencies.
That is sometimes adopted by an artificially created hype on social media platforms, as scammers usually inject a major sufficient quantity of liquidity into their pool to domesticate an investor base and construct belief within the undertaking.
Ultimately, as soon as a major quantity of funding enters the pool the scammers abandon the undertaking and exit with the proceeds as they quickly promote their native token and deplete the liquidity pool.
In contrast to centralized cryptocurrency exchanges, so-called rug pulls thrive on decentralized exchanges (DEXs) since they permit customers to listing tokens at no cost and with out audit.
Creating tokens on open-source blockchain protocols is pretty simple and free and con artists benefiting from this isn’t a novelty.
Nonetheless, alongside accelerated publicity and rising curiosity in crypto, the speed of scams additionally retains advancing.
Get an edge on the cryptoasset market
Entry extra crypto insights and context in each article as a paid member of CryptoSlate Edge.
Like what you see? Subscribe for updates.