- MEME, MEMEPAD, TITANX lost 100% of their value
- The tokens shared the same name as their legitimate counterparts
Over the past several hours, blockchain security firm PeckShield revealed a series of rug pulls, which wreaked havoc on members of the crypto community.
Rug pulls, explained
Rug pulls, a common type of cryptocurrency scam, involve unexpected and intentional value drops in specific tokens. The cybercriminals announce a new token launch and people begin investing in it, generating a so-called liquidity pool. They wait for a significant amount to accumulate in the pool and then drain it, leaving potential traders and investors in the lurch.
After they drain the pool, the perpetrators exchange the altcoins for Ethereum (ETH). In this case, the meme coins MEME, MEMEPAD, and TITANX were affected. The tokens that fell victim to the rug pulls shared the same name as their legitimate counterparts, further complicating the matter.
MEME, MEMEPAD, TITANX lost 100% of their value
PeckShield tweeted that these tokens, which were based on the Ethereum Mainnet, lost 100% of their value. Specified blockchain addresses exchanged MEME tokens worth around 43.68 ETH, MEMEPAD tokens worth around 44.84 ETH, and TITANX tokens worth around 46 ETH. At current rates, 44 ETH is equivalent to just under $80,000.00.
Halloween nightmare didn’t spare Fantom
The Fantom Foundation experienced its own cataclysms leading up to Halloween. The platform is battling the consequences of drained funds and swift token exchanges. Blockchain sleuth PeckShield reported two major incidents involving the platform’s funds, which have left it with substantial losses.
Fantom Foundation lost $16M+ in October
The first incident took place on October 17, 2023. Fantom-linked wallets were drained of crypto worth around 4,500 ETH, or more than $8 million at current rates.
About ten days later, the Fantom Foundation faced another challenge. An unidentified entity exchanged more than 8 million DAI, a stablecoin with a 1:1 USD peg, for 4,560.52 ETH and drained the whole amount.
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