Crypto Caution: High-Profile Rug Pulls That Shook the Investment World
The cryptocurrency market, characterized by its inherent volatility and swift transformations, has recently been hit hard by a series of high-profile rug pulls. These incidents, where developers exploit and then abandon their projects after draining funds, have not only caused substantial financial losses but also served as stark reminders of the risks associated with crypto investments. This article delves into some of the most startling rug pulls that have emerged recently, featuring notable cases such as Neiro, ETHTrustFund, 50 Cent’s X account, and Catwifhat.
Neiro Developer Makes $2.85 Million in Alleged Rug Pull
In a notable event involving the Solana-based memecoin Neiro, the project’s creator is alleged to have orchestrated a rug pull, reaping an impressive yet questionable profit of $2.85 million. Initially investing just 3 SOL (around $550), the developer managed to achieve a remarkable return of 5,169 times their initial investment. The sale of 68 million Neiro tokens for 15,511 SOL, roughly $2.85 million, was carried out through various wallets. Furthermore, the developer transferred 10 million Neiro tokens to a dead wallet and retained 19.5 million Neiro tokens with an unrealized profit of $1.8 million. The significant withdrawal from the developer’s wallet reflects a typical rug pull scenario, where insiders sell off their assets and abandon the project, leaving investors in a difficult position.
ETHTrustFund Executes $2 Million Rug Pull
The ETHTrustFund (ETF), a protocol operating on the Base network, became embroiled in controversy when it reportedly executed a rug pull involving $2 million. On July 20, the protocol transferred these funds to Tornado Cash and Railgun mixer applications, subsequently erasing all of its online presence, including its websites and social media profiles. This swift disappearance led security experts to categorize the incident as a classic rug pull or exit scam. The details of this scam were initially disclosed by crypto investor Octoshi on July 21 and later verified by blockchain security firm PeckShield on July 22. The ETF project, initially pitched as a decentralized autonomous organization (DAO) with innovative rebasing features, had issued blockchain-based bonds and ETF tokens. However, the anticipated debasing phase never materialized, and the project’s lead developer ceased communication in April before allegedly executing the scam in July.
50 Cent’s X Account Hijacked for Memecoin Rug Pull
Curtis James Jackson III, better known as rapper 50 Cent, recently found himself entangled in a crypto scam when his X account and website were reportedly hacked to promote a fraudulent cryptocurrency token named “GUNIT.” Exploiting Jackson’s extensive following, the hackers artificially inflated the token’s value before orchestrating a classic rug pull. The price of the token plunged dramatically to $0.00016. Jackson later informed his 32.8 million Instagram followers about the breach, revealing that the hackers had reportedly amassed $300 million within just 30 minutes, although the actual trading volume was around $19.4 million. Multiple wallets were involved in significant sell-offs of GUNIT, with four accounts each liquidating over $100,000 worth. Jackson has made it clear that he had no involvement in the scam.
Catwifhat’s Double Rug Pull Saga
The Catwifhat token story began in November of last year with the launch of Dogwifhat, a project that capitalized on a popular meme and gained momentum through endorsements from influencers such as Joji. However, Catwifhat, the subsequent project, soon fell prey to an alleged exit scam. The developer abandoned the project after offloading tokens and withdrawing liquidity, resulting in an estimated $265 in gains. Despite this setback, the Catwifhat community rallied, attracting new investors and continued support from influencers like Joji. Unfortunately, a second rug pull occurred when a social media manager drained the liquidity, causing the token’s value to plummet from $0.00431771 to $0.00098130, a 76% drop. Nevertheless, the community remained determined, working towards the creation of an NFT marketplace using CIF tokens. As of April 2, CIF was valued at $0.001451 with a market cap of $1,451,116. The ongoing efforts of the Catwifhat community demonstrate both the persistence of some investors and the enduring risks associated with rug pulls in the cryptocurrency space.
Conclusion
The recent spate wave of rug pulls has underscored the need for heightened caution within the cryptocurrency landscape. From the Neiro developer’s $2.85 million windfall to the $2 million ETHTrustFund exit scam, these events have resulted in considerable financial losses and shaken investor confidence. Even high-profile individuals, such as 50 Cent, have fallen prey to these scams. Nevertheless, some communities, like those behind Catwifhat, have demonstrated resilience and determination to rebuild despite the setbacks. As such, it is crucial for investors to remain vigilant and informed to navigate the volatile and often perilous world of cryptocurrencies effectively.
