Web3Memes Rugs $235,000 from Investors

| Updated
by Sanaa Sharma · 2 min read
Web3Memes Rugs $235,000 from Investors
Photo: Depositphotos

Web3Memes possesses tokens that can be rolled out by anyone on BSC or other similar networks.

Developers working behind Web3Memes (W3M), a meme coin based on Binance Smart Chain (BSC), have exhausted the token’s liquidity pools of approximately 625 Binance Coins (BNB) from investors. The recent news was verified and confirmed by PeckShield on Wednesday.

According to a tweet by PeckShield, the unceremonious stunt deprived the Binance Coins of around USD 235,000 worth of assets. Web2Memes submitted the 625 BNB to TornadoCash. The tweet also warned users to steer away from tokens deployed by funds withdrawn from TornadoCash.

According to the data reflected on BscScan, the currency was created in the wee hours of Asian time and was listed on BSC-based Pancake Swap soon after. W3M, on the other hand, witnessed more than eighteen hundred transactions in the eventual hours, and around 1,000 holders.

Regardless, the anonymous developers hauled over W3M’s trading liquidity around 5 hours ago following its issuance. The move gave rise to something dreadfully called the ‘rug pull’ in crypto lingo. A rug pull is a malignant act in the crypto space wherein crypto-asset developers desert the project they’re working on and flee with the investor’s money.

Following the discouraging news from Peckshield, the rate of W3M tanked from a peak of $0.000000204 to below $0.00000000277 following the rug pull. The plunge is almost 100% from its original value.

Web3Memes possesses tokens that can be rolled out by anyone on BSC or other similar networks. The issuers can subsequently pair the tokens with an additional famous token, like Tether or BNB, and document the couple on a Decentralized exchange by supplying primary liquidity. The process is completely automated and depends on smart contracts rather than third parties or centralized entities.

Rug pulls, in the past, have cost significant damage to the investors’ money. In 2021, around $2.8 billion of investors’ funds were drained into rug pull fraud. In comparison to 1 percent of scam revenue collected in 2020, in 2021, the percentage went up to 37%.

Altcoin News, Blockchain News, Business News, Cryptocurrency News, Investors News
Sanaa Sharma
Author Sanaa Sharma

Sanaa is a chemistry major and a Blockchain enthusiast. As a science student, her research skills enable her to understand the intricacies of Financial Markets. She believes that Blockchain technology has the potential to revolutionize every industry in the world.

Related Articles