Multiple Rug Pulls Rock Crypto Market on Halloween
On Halloween Day, the crypto community was stunned by a disturbing revelation from PeckShield, a well-known blockchain security company. They uncovered a series of rug pulls that had occurred in the past few hours, causing significant losses for investors.
Rug Pulls: A Form of Cryptocurrency Scam
Rug pulls are a type of cryptocurrency scam where scammers intentionally cause sudden drops in the value of specific tokens. They then swap these tokens for Ethereum (ETH), leaving investors with worthless assets. The meme coins affected by these rug pulls were MEME, MEMEPAD, and TITANX.
The MEME Token Plummeted in Value
According to PeckShield’s X (formerly Twitter) post, the MEME token on the Ethereum blockchain experienced an astonishing 100% drop in value. An address known as 0xBd72…5871 swapped an incredible 4,854,740,126,240,000 MEME tokens for approximately 43.68 ETH. It’s worth noting that this rug pull token shared the same name as the legitimate MEME token, causing even more confusion.
The MEMEPAD Token Also Suffered a 100% Value Drop
In a similar fashion, the MEMEPAD token on Ethereum also experienced a 100% drop in value. The address 0xBd72…5871 swapped 4,854,740,126,240,000 MEMEPAD tokens for around 44.84 ETH.
Fantom Foundation Faces Significant Losses
The Fantom Foundation finds itself entangled in a troubling situation involving fund drains and rapid token swaps. PeckShield has reported two major incidents that have resulted in substantial losses for the foundation.
The First Incident: October 17, 2023
On this date, wallets associated with the Fantom Foundation were drained of approximately $7 million worth of cryptocurrencies, equivalent to around 4,500 ETH.
The Second Incident: October 26
In another devastating event, an unidentified entity known as the “Fantom Foundation Drainer” swapped a staggering 8,087,377.97 DAI for 4,560.52 ETH. The situation worsened when the drainer quickly executed another swap on October 30, converting the 4,560.52 ETH back into approximately 8.3 million DAI within just 30 minutes.
Fantom Foundation’s Response
The Fantom Foundation now faces the daunting task of investigating these breaches, identifying the culprits, and strengthening its security infrastructure to prevent future incidents.
Positive Performance of FTM Token
Despite these challenges, the FTM token is currently trading at $0.2388, reflecting a 1% increase in the past 24 hours. The token has shown significant growth over various time frames, with gains of over 6% and 30% in the seven-day and fourteen-day periods respectively. Over the year-to-date period, it has recorded a 5% increase.
Hot Take: Crypto Community Shaken by Halloween Rug Pulls
The recent rug pulls on Halloween have sent shockwaves through the crypto market. Investors are reminded to remain cautious and vigilant when investing in cryptocurrencies to avoid falling victim to scams and manipulations. It is crucial to conduct thorough research and exercise due diligence before making any investment decisions in this volatile industry.
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