Developers behind Web3Memes (W3M), a Binance Smart Chain (BSC)-based meme coin, drained the token’s liquidity pools of nearly 625 Binance coins (BNB), blockchain security firm PeckShield said on Wednesday.
- The amount is worth $235,000 at the time of writing. PeckShield first reported the exploit in a tweet.
- Blockchain data shows the token was created during early Asian hours and was listed on BSC-based PancakeSwap shortly afterward. W3M saw over 1,800 transactions in the following hours and over 1,000 holders at the time of writing.
- However, the anonymous developers pulled W3M’s trading liquidity some five hours after its issuance – causing the infamous rugpull, a crypto market lingo used to refer to such acts.
- Prices of W3M dumped from highs of $0.000000204 to under $0.00000000277 after the rugpull, a near 100% decrease.
- Tokens like Web3Memes can be issued by anyone on BSC or other networks. Issuers can then pair such tokens with another popular token, such as tether (USDT) or BNB, and list the pair on a decentralized exchange by providing initial liquidity. The process is wholly automatic and relies on smart contracts instead of third parties or centralized entities.
- In 2021, over $2.8 billion in investors' funds were lost to rugpulls, as reported. The figure accounted for 37% of all scam revenue during the year compared to just 1% in 2020.
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