We read rugpull news of new cryptocurrency projects at least every other day. Because scammers are everywhere and they are being hunted. The concept of pre-sale, ICO has led to the spread of “crowdfunding” all over the world. Communities contribute to the construction of projects where they can make serious money by joining forces and relying on a team.
Of course, these developers, trusted by the community, are not always well-intentioned. Startups like Çiftlikbank, Kairos or Megaholdings were doing this even when cryptocurrencies were not that common. So the problem is not with cryptocurrencies. The problem starts with the person himself.
This Altcoin Dropped 85%
The MIC token, which was IDO by @Legendary_Retro today, is down 85%. Over $150,000 was lost in the MIC-USDC pool. It is not possible for investors buying with IDO to melt the pool that much. In the warning made by CertiK, attention was drawn to the possibility that the project was made by Rugpull. We’ve written a lot about rugpull in the past weeks. We sought answers to the questions of what it is, how it happens and how we can be protected.
But experience is the best teacher, MIC token investors learned a bitter lesson today.
Taking Risks in the Right Place
Granted, game projects are popular and altcoins have been making some serious money due to the enthusiasm for the metaverse. But are you aware of what you lose when you buy the possibility of increasing your investment thousands of times? LEGENDARY RETRO investors thought they were the first customers of a great game. Even the fonts on the project’s website show how rushed he is. They came without seeing these, because this project will save them a lot of money.
They browsed the website a bit and saw the amazing promises of developers in the area of “Mining, Oath, Combat, DEFI, NFT, DAO”. Ambitious targets for a BEP-20 token, but still focused on earnings, they ignored this absurd roadmap.
Issuing BEP-20 or ERC-20 tokens is extremely easy. I can say without exaggeration that it will not take more than 1 hour to prepare such a website and print tokens. You can pre-sale in 1 hour by copying the roadmap of any game project, cloning the website and printing the project token. So, can’t something so easy be used by scammers?
Read the Whitepaper of this project, half of the anonymous developers are called Facebook and the remaining half are Google engineers. He mentions that the project is in partnership with Galaxy Digital. Despite such exaggerated stories, people invested $200,000 in this business. As a result, they lost all their money.