Scammer Rug Pulls Nigerian Crypto Community with STIMMY Coin
Unfortunately, rug pulls have become a common occurrence in the crypto market, and the Nigerian crypto community has fallen victim to one. A trusted influencer in the community, Feyi, launched a project called STIMMY Coin that raised $300,000 in its presale.
The Genesis Of Stimmy Coin (STIMMY)
STIMMY Coin was created as a parody of the stimulus checks received by US residents during the COVID-19 lockdowns. The founder, Feyi, gained popularity due to his large following on X (formerly Twitter), and he promoted the project through social media contests.
Feyi had built a loyal following by criticizing founders who scammed investors, which made people trust him. However, things took a turn on the day of the presale when Feyi asked investors to send ETH directly to his personal wallet instead of using a reputable platform.
Cracks Begin to Show
After raising $300,000 in the presale, participants received tokens and STIMMY coin was listed on decentralized exchanges. However, there were problems from the start. Less than half of the presale funds were added to the liquidity pool, causing losses for participants. Additionally, there was no marketing for the project despite Feyi holding $150,000 in his personal wallet.
Feyi And Developer Pull Liquidity Pool For STIMMY Crypto
The STIMMY liquidity pool was locked for four months, raising suspicions among investors. When it was unlocked, $85,000 worth of ETH was quickly moved out and ended up on KuCoin after being bounced through multiple wallets. Users on X identified the developer behind the project and circulated their LinkedIn page.
The Aftermath
The rug pull left investors with worthless coins that they couldn’t sell. This incident serves as a warning about investing in untested crypto founders and has further damaged the already fragile reputation of Nigeria’s crypto projects.
Hot Take: The Risks of Rug Pulls in the Crypto Market
The recent rug pull of STIMMY Coin in the Nigerian crypto community highlights the risks that investors face in the market. Scammers are always looking for opportunities to make quick cash, and unfortunately, rug pulls have become synonymous with the crypto industry.
This incident serves as a reminder to exercise caution when investing in new and unproven projects. It’s crucial to do thorough research on the founders, their track records, and the project’s fundamentals before committing your hard-earned money.
While rug pulls can be devastating for investors, they also shed light on the need for stricter regulations and better security measures within the crypto market. As the industry continues to evolve, it is essential for investors to stay vigilant and protect themselves from potential scams.
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