‘Web3Memes’ Rugs $235K From Investors Five Hours After Issuance: PeckShield

‘Web3Memes’ Rugs $235K From Investors Five Hours After Issuance: PeckShield
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‘Web3Memes’ Rugs $235K From Investors Five Hours After Issuance: PeckShield

Developers behind Web3Memes (W3M), a Binance Smart Chain (BSC) based memecoin, 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. “PeckShield has detected $Web3Memes rugged. 0x5adbffa751abcdfc94d2a81f5657113d37a3494f has deposited 625 BNB to TornadoCash,” it tweeted.
  • Blockchain veri 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.
‘Web3Memes’ Rugs $235K From Investors Five Hours After Issuance: PeckShield

Web3memes prices fell nearly 100% after the rugpull. (PooCoin)

  • Tokens like Web3Memes can be issued by anyone on BSC or other networks. Issuers can then pair such tokens with another popular token, like Tether 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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