The ORDEX Rug Pull: A Loss of Over $70,000
In the world of cryptocurrencies, fraudsters are always looking for new opportunities to scam unsuspecting investors. The latest incident involves the Ordinal DEX (ORDEX) token, which plummeted to zero in less than an hour due to a rug pull carried out by the team behind it.
According to PeckShield, an address starting with 0xea81 exchanged one quadrillion ORDEX tokens for approximately $70,600 worth of Ethereum (ETH). As a result, the token’s value quickly dropped to zero on Uniswap. PeckShield warned that the fraudulent token shares the same name as legitimate ones.
Similar Incidents and Warning Signs
This is not the first time such a scam has occurred. In December, scammers manipulated a fake GEMINI token and conducted a rug pull. They converted 4.2 quadrillion GEMINI tokens into Wrapped Ethereum (WETH) and made off with their ill-gotten gains.
Scammers often create imposter projects with tickers similar to legitimate ones. For example, they used the ticker ISLAMIC for a fake project called Islamic Coin (ISLM) on the BNB chain and stole over $150,000 from unsuspecting investors.
Protecting Yourself from Rug Pulls
To avoid falling victim to rug pulls and other scams on decentralized exchanges, it’s important to double-check the ticker symbols of the coins you’re trading. Additionally, using crypto data aggregator tools can provide valuable information about where a specific token is listed.
It’s also worth noting that tokens with very low market capitalization are more likely to be involved in rug pulls. These tokens are easily manipulated and highly volatile.
Hot Take: Be Vigilant and Do Your Research
The ORDEX rug pull serves as a reminder to crypto investors to always be vigilant and do thorough research before investing in any project. Scammers will continue to exploit new narratives and create fraudulent tokens, so it’s crucial to stay informed and verify the legitimacy of any investment opportunity. By being cautious and taking the necessary precautions, you can protect yourself from falling victim to scams in the crypto space.
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