Lucky Star Currency (LSC) Rug Pull: Developer Steals $1.11 Million
A recent report from blockchain security firm PeckShield reveals that Lucky Star Currency (LSC), an altcoin token based on the Binance Smart Chain, has experienced a rug pull. This means that the developer of LSC, a relatively new crypto token, has deceived its users and made off with $1.11 million, causing the value of the altcoin to plummet.
This incident has resulted in a staggering loss of over 98% in the value of LSC, shedding light on the increasing number of malicious scams within the crypto and DeFi industry.
The exit scam involved dumping 3 million LSC tokens from two separate contracts and securing a profit in Binance USD (BUSD). Transaction records indicate that one address sent around 1.4 million tokens to the exit address, while another was responsible for 1.65 million tokens.
Currently, LSC is trading at $0.01036 with a market cap of $101K, compared to its previous market cap of $28.7 million.
Growing Rug Pulls
A report by Solidus Labs, a blockchain risk monitoring firm, highlights the alarming rate at which rug pulls are occurring. According to their findings, 15 new scam tokens are detected every hour, resulting in nearly two million investors losing their funds to rug pull schemes.
The report also reveals that approximately 12% of all Binance Smart Chain-based tokens are rug pulls.
Datawrapper, a database of cryptocurrency rug pulls and scams, reports that there have been four crypto rug pulls in just this month alone. One recent example is the CommEx token, where the developer orchestrated a liquidity withdrawal and drained approximately $154,000 worth of investor funds.
Hot Take: The Need for Increased Security Measures
The prevalence of rug pulls in the crypto industry underscores the importance of implementing stronger security measures. Investors must exercise caution when investing in new altcoins and conduct thorough research to avoid falling victim to these scams. Additionally, regulatory bodies should work towards creating stricter guidelines and regulations to protect investors from fraudulent schemes. As the crypto space continues to grow, it is crucial to prioritize security and transparency to foster trust among investors.
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