Blockchain security firm PeckShield reported a new case of rugpull in a tweet Wednesday. PeckShield said in a statement that the developers behind Web3Memes (W3M), a Binance Smart Chain (BSC)-based memecoin, drained the liquidity pools of the token of approximately 625 Binance Coins (BNB).
Developers of This Altcoin Empty Liquidity Pools
Blockchain analytics and security company PeckShield Inc., with its announcement today, warned investors against this altcoin. So much so that PeckShield reported a new rugpull case with a post on Twitter this morning.
PeckShield said in a statement that the developers behind Web3Memes (W3M), a Binance Smart Chain (BSC)-based memecoin, drained the liquidity pools of the token of approximately 625 Binance Coins (BNB).
Blockchain data shows that the token was recently created and listed on BSC-based PancakeSwap. Within hours of listing, W3M saw more than 1,800 transactions and more than 1,000 owners.
However, anonymous developers pulled trading liquidity about five hours after W3M went live, causing “rugpull”.
Price Dropped 100%
W3M price has dropped close to 100% after developers drained their liquidity pools. So much so that while the price was trading at $0.000000204 just before the decrease, it fell below $0.000000000277 with rugpull.
Tokens like Web3Memes can be created by anyone on the BSC or other networks. Token developers can then pair such tokens with another popular cryptocurrency such as Tether or BNB and list the pair on a decentralized exchange, providing initial liquidity. The process is fully automated and relies on smart contracts rather than third parties or centralized entities.
In addition, according to reports, more than $ 2.8 billion of investor funds were caught by rugpulls in 2021. This figure accounted for 37% of all fraud revenues during the year, compared to just 1% in 2020.