The DecentraWorld token has experienced an alarming price drop. This happened when the founders drained BNB’s cash and withdrew the project, a rug sweater. As a result, the scammers got away with more than a million dollars in BNB tokens.
A new rug pull for web 3.0
Last night, Twitter raised the alarm when the native token DEWO from DecentraWorld lost most of its value in a matter of seconds. The price drop was unexpected because the project and its native token had experienced a very positive development trend until then.
Unfortunately, it later turned out that this price drop was the result of a stunt worth more than a million dollars at the time. The founding team of DecentraWorld emptied the project’s coffers and stole 3,127 BNB.
In some promotional articles we can read a description of the project in this form: ” DecentraWorld was founded in 2021 by a group of whitehat developers who believe in financial privacy and freedom. Since then, DecentraWorld has experienced massive growth in all aspects, including exposure, community, development, team and partnerships. It seems that a lot of people support freedom. We are currently in partnership with Binance Bridge n°1, Multichain.org. In addition, DecentraWorld has partnered with the Asian mega launch pad Kommunitas, and organized a seed sale. The partnership with Getblock.io , which provides DecentraChain with log-free private nodes (RPC). »
The community reacts to this scam
Some Twitter users claimed that the downgrade occurred just a few hours after SafeMoon whitelisted DecentraWorld’s address as a Safeswap partner. Even if this is the case, SafeMoon has officially banned the wallet address associated with the rug sweater. The SafeMoon project is also very controversial, especially since one of the main members of the team, Charles Karony, is returning to the university benches.
Since the price of the DEWO token fell sharply, users and token holders began to try to investigate what was happening. Unfortunately, all official links and social media profiles of the project have been deleted. Of course, this led to massive outrage among members of the community.
The company Solidproof-io is in the middle of an investigation, as we can read on their medium ” On 05/24/2022 at around 17:45 UTC, the entire liquidity of the project was withdrawn using unlocked tokens. We immediately contacted the founder, who said on his own that the KYC was carried out by an American in the amount of $ 1000. This person was able to prove his address in our KYC process by means of a bank statement and various invoices, and the documents presented were also not falsified. Attempts were made to reach the intermediary by SMS and e-mail. He has 24 hours to comment on the incident, after which we will forward his data to the competent authorities and prepare for the publication of his data ».
Some members even invest in a project called Decentraworld 2.0, promising that it is completely controlled by the community. It is not advisable to invest in this type of project immediately and immediately after a rug sweater.
The Binance Smart Chain
This rug sweaters are multiplying, especially on Binance Smart Chain, resulting in losses of thousands, or even millions, for innocent retail investors. As these exchanges offer an exchange flow free from any regulation, any individual can now create a token and make noise around it to make investors believe that they can 10x-100x their capital.
One of the most impressive recent cases is that of the SQUID token. The project gained popularity when Squid Game fans started investing, some of them thinking that there was an official affiliation between the Netflix show and the token.
Binance is the largest exchange in terms of trading volume, but it is also responsible for most exit scams. In 2020, it was proved that smart chain contracts on Binance led to 99% of the significant volume of fraud. The number of Defi projects and money on the market has increased significantly compared to last year.
They rug sweaters continue to wreak havoc in the cryptocurrency world. This causes hostility towards web 3.0 on the part of many politicians, and yet despite the harmful effects of these rug sweaters, it is first necessary to sensitize investors. And not penalize the entire sector and the necessary innovations that web 3.0 brings to the world and its economy.
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Observer of the monetary, economic and social revolution.