Increase in Rug Pulls on Launchpool Platform
In anticipation of the launch of Sleepless AI farming on the Launchpool platform from Binance, unknown individuals conducted a rug pull of the token of the same name. This fraudulent scheme caused the token’s price to plummet by 97.5%.
Fake Tokens and Devalued Prices
PeckShield analysts discovered that one of the addresses involved in the rug pull exchanged 1 billion fake AI tokens for $91,000 worth of ETH. Similarly, another rug pull scheme targeted the fake FomoFi token, resulting in a complete drop in its value.
In a separate incident, the NebulaNode token experienced devaluation after numerous NNNN tokens were exchanged for 1033.8 BNB, equivalent to $335,900.
Sleepless AI Farming Project
The original Sleepless AI project on Launchpool commenced its farming phase on December 28th. It is a web3 gaming platform that incorporates AI technology. Users can currently stake BNB, FDUSD, and TUSD in pools to farm AI tokens during a seven-day campaign.
Previous Rug Pull Involving Linea Tokens
Certik security experts reported an earlier rug pull involving fake Linea tokens. This scam resulted in the theft of approximately $743,000. The victims suspect that a Russian user named ‘AltLex’ was behind the fraud as they promoted the token on social media.
Hot Take: Protect Yourself from Rug Pulls
Rug pulls are becoming increasingly common in the crypto space, and it is crucial to protect yourself from falling victim to such scams. Before investing or participating in any project, conduct thorough research on its legitimacy and background. Verify the team members, check for audits, and be cautious of unrealistic promises or guarantees. Additionally, use trusted platforms and exchanges to minimize the risk of rug pulls. Stay informed and remain vigilant to safeguard your investments.
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