These 7 Altcoins Are Scams: Rug Pull Has Been Done!

Blockchain security firm PeckShield shared that it has detected “rug pull” on seven IDO protocols. According to the statements made on Twitter during the day, GOTEM, ONEP, HBARP, MPLAY, ELIT, PEE and QDrop altcoin projects were hacked and approximately $2.6 million was withdrawn into Tornado Cash. Details at Kryptokoin.com .

Funds render untraceable in Tornado Cash (TORN)

Developers abandon project after withdrawing investors money and allocating large sum to fake crypto or DeFi project a “rug pull” occurs. This phenomenon is especially common on DeFi and DEX platforms. PeckShieldAlert Twitter account shared the “rug pull” operations it detected in 7 IDO protocols in the tweet below. Accordingly, 5,744 WBNB Tornado Cash (TORN) worth $2.6 million stolen was sent to the transaction hider.

• Accustomed in the community of rug pull operations on altcoin projects is a situation. Because, the analytics company Chainalysis reveals that the crime rates related to cryptocurrencies alone peak in 2021, revealing 14 billion dollars of victimization. This rate has increased by over 500% compared to 2020, reaching roughly $3.2 million. 72% of “rug pull” operations take place in altcoin projects that provide DeFi services.

Scammers exploit altcoin investors’ inexperience

Chainalysis in December 2021 According to the report, there are $10 billion worth of cryptocurrencies on illegal websites. According to the company, the inexperience of many investors in decentralized exchanges (DEX) is seen as an opportunity by scammers. Apart from these, on December 29, Mark Cuban-backed altcoin project Polygon (MATIC) announced that a critical error in its contracts cost $ 1.6 million. However, the ethical hackers who identified the vulnerability and informed the project were rewarded with $3.46 million.