Rug pull is a lucrative scam in which a crypto developer introduces a new project (usually a new token) to investors and then disappears with tens of millions or even hundreds of millions of dollars. According to Chainalysis, a blockchain analytics organization, such scams caused their victims $2.8 billion in grievances in 2021, accounting for 37% of all Bitcoin scam earnings. A new altcoin rug pull operation reported by PeckShield is Tether Shiba’s (TSHIB).
Stay away from this altcoin project
Blockchain security firm PeckShield warned investors about a cryptocurrency back in the day. Rugpull was discovered on the Tether Shiba (TSHIB) project by PeckShield in a recent Twitter post. According to the security firm, Tether Shiba’s (TSHIB) social media profiles have been removed. The price of the token plummeted significantly after the project deleted its social media profiles and disappeared. According to the blockchain analytics and security firm, investors should stay away from the Tether Shiba project.
The chart below shows the price action of Tether Shiba (TSHIB) in the last hours. At current levels, TSHIB fell from the $0.0007 zone to $0.0005. This translates to about 30% depreciation from the peak price.
Scammers even infiltrated Binance exchange
Apart from Tether Shiba (TSHIB), in recent developments, the team behind an altcoin project called JasmyCoin (JASMY) has started selling JASMY tokens using the “rug pull” method. Just like TSHIB, wallets holding large amounts of the token are slowly selling JASMY tokens. The advice of security firms is to stay away from these cryptocurrencies.
Finally, a report from the Federal Trade Commission (FTC) shows that investment fraud-related projects received approximately 6,800 complaints from October 2020 to March 2021. Reported losses increased more than tenfold to over $80 million. For all the cryptocurrency’s hi-tech brilliance, most of the scams involved are orchestrated over newly released versions of classic scams. It is possible to see it in the obsessions carried out by fraudsters who appear to be billionaires or other big names on the Internet.