Three Rug Pulls Rock Decentralized Finance Sector

Hacks and scam are not new in the decentralized finance sector as the sector has seen a handful of events like this take place since inception. A generalized motion was the fact that hackers were able to manipulate and steal funds from only unaudited protocols.

This claim has since been squashed ever since hackers have been able to manipulate and steal funds off audited and registered protocols in the Defi sector. Another issue is the theft of various assets and tokens from rug pools which has been happening in the sector for a while now with the latest one happening not quite long.

Rebase coins responsible for two of the rug pull

One thing that has aided the increase of such hacks and scams known as rig pulls in the decentralized finance sector is the fear of missing out from traders who see every surging asset as a potential investment opportunity. This Friday saw a new record set as three rug pulls occurred in the decentralized finance sector. According to the information regarding the rug pulls, news outlets noted that rebase coins which means that traders can extend their contracts on if they demand so, provided they hold a certain position.

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Due to this reason, investors have been clinging to all the rebase coins that are emerging in the sector so they do not lose out on the profits that they will gain from them. While some of the rebase coins have been seen as legitimate, other malicious actors have taken advantage of the opportunity to create their own fake rebase coins. One of the rug pull was a new rebase coin that was released.

The developer of DeFiB, the rebase coin in question told users on the platform that the value on the rebase coin would soon match that of the highest coin on the Defi sector. However, investors were left hanging as the rebase that was supposed to take place on Friday didn’t take place, sparking up rumours of a scam.

The third rug pull was the highest of the day

With the rebase not happening, the developers went ahead to erase all records and drained all the tokens belonging to users that were in the pool. The total amount that was drained from the liquidity pool was said to be around 600 Ethereum which is worth around $300,000. One surprising fact was that some of the users of the protocol got their tokens returned by to them by the developers. The second rug pull that occurred involved a very well known developer in the decentralized finance sector.

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According to reports, the protocol iBase raised approximately $130,000 Ethereum in a pre-sale that took place. The developers were supposed to send some tokens to Uniswap but didn’t and went ahead to delete their telegram accounts and was nowhere to be found. Presently, the previous token that the developer introduced, YFFS, has lost about 85% and analysts have said that it could signal the end for the token. The biggest rug pull that took place was the theft of more than 1,000 Etheruem, which is worth around $800,000. DeTrade Fund was said to have amassed the tokens in a pre-sale and went ahead to delete their profiles, carting away all the cash in the process.

Adebayo Owotunse (Nigeria)

Adebayo Owotunse is a versatile writer who has written hundreds of crypto articles for dozens of agencies across the years. He is now also the newest addition to the Tokenhell writers team.

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