Crypto project Encryption AI (0XENCRYPT) has experienced a rug pull, resulting in a crash of 99% and a loss of $2 million. The developer behind the project confessed to falling into a severe addiction to online gambling, losing nearly $300,000 in the last two months. It is uncertain whether the project will be relaunched or if the developer can make amends.
Key Points:
– Encryption AI developer admits to an online gambling addiction, leading to the rug pull.
– The project aimed to offer a secure and efficient way to launch new tokens.
– The price of 0XENCRYPT has plummeted from $2.06 to $0.02.
– The rug pull of Encryption AI coincided with the rug pull of TOOLS, a BSC-based DeFi dashboard.
– Rug pulls and hacks have been frequent in the crypto market in 2023.
The rug pull of Encryption AI is just one example of the growing number of incidents in the crypto market. TOOLS, another project that claims to enhance trading experiences, also suffered a rug pull. The lack of developer verification in both cases is a warning sign of potential risks.
In 2023, rug pulls and hacks have become prevalent, causing significant losses for crypto investors. The U.S. Commodity Futures Trading Commission (CFTC) has issued warnings about the increased coordination and innovation of hackers. Despite efforts to address these issues, bad actors continue to exploit vulnerabilities in the market.
Hot Take:
The rug pull of Encryption AI highlights the risks of investing in crypto projects without proper due diligence. The lack of developer transparency and verification is a red flag that investors should be cautious of. As the crypto market evolves, it is crucial for regulators and investors to implement stricter measures to protect against such incidents.