Lucky Star Currency (LSC), a Binance Smart Chain-based altcoin token, has reportedly suffered a rug pull, according to blockchain security firm PeckShield.
The developer of the LSC, a relatively new crypto token, has managed to rug pull its users of $1.11 million, crashing the altcoin’s value to nearly zero.
“Lucky Star Currency $LSC on BNB Chain rugged for $1.1M. LSC price dropped from $2.8 to $0.04,” a monitoring site Beosin Alert, posted on X (Twitter).
The coin shed a staggering loss in value of over 98%, putting a spotlight on the growing list of malicious scams in the crypto and DeFi industry.
The exit scam address dumped a total of 3 million LSC tokens from two separate contracts, securing a profit in Binance USD (BUSD).
Per transaction records, one address sent around 1.4 million tokens to the exit address, while another was responsible for 1.65 million tokens.
LSC token is currently trading at $0.01036 at press time with a market cap of $101K, which previously stood at $28.7 million.
Rug pulls or exit scams happen when fraudulent developers create a new crypto token, hype the token price and drain entire investor funds, before absconding with them as the token drops to zero.
Growing Rug Pulls
A 2022 report from blockchain risk monitoring firm Solidus Labs, noted that 15 new scam tokens are detected every hour and almost two million investors have lost funds to rug pull tokens.
The report further noted that “12% of all Binance Smart Chain-based tokens are rug pulls.”
According to Datawrapper, a database of cryptocurrency rug pulls and scams, there have been four crypto rug pulls reported in this month alone. Last week, CommEx token witnessed an orchestrated liquidity withdrawal in a rug pull, where the developer drained approximately $154,000 worth of investor funds.
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