Three DeFi Rug-Pulls Led To $1.2M Worth Of ETH Theft: Report

In one day, there were three defi rug-pulls performed where $1.2 million worth of ETH was stolen as we are reading more in today’s ethereum price news.

Over the past few days, there was a renaissance in altcoin trading since projects on Uniswap started rallying by thousands of percent. Some bigger names gained hundreds of percent and benefited quite a bit as BTC and ETH started faltering. Some of these rallies were predicated on innovation like SnowSwap which launched a partnership with BadgerDAO and right after that it increased by 500%, while the Dynamic Set dollar entered a new phase and surged by 1000%.

Do not ape in every fork guys. I am a full time degen but I never ape in even at the dips before almost contacting devs LinkedIn or TG.$DEFIB rugged ~600 $ETH

Didn't ape in it. Not a dime. Feeling sorry for your losses. There are good rebase projects. Not all forks are bad.

— gokhan.eth 🧬🚀💾🏴 (@0xgokhan) December 11, 2020

However, it reached a new point where there are some traders that were buying whatever it came their way and it looked interesting. This has made it a perfect climate for scammers to try and earn some fast money. And in fact, they succeeded. There were three defi rug-pulls performed in one day this past Friday. A Rug-pull is a term that is popularized in the DeFi space over the past summer to describe scams and hacks.

Over the past few days, one of the biggest trends in the DeFi market was the rebase coins. Rebasing is a crypto term popularized by Ampleforth with the basic idea that a supply of one cryptocurrency can contract or expand based on the demand or certain price threshold that the traders have to maintain. For some reason, investors were afraid of these rebasing coins over the past few days and this included some questionable presales that were launched by new developers. One coin in particular, the DeFiB, promised to be a rebasing coin that is based on Ethereum that could automatically gravitate to the value of all DeFi coins in circulation.

Look at the video of the “CEO” of DeTrade Fund which just rugged.. the audio is a little delayed because of screen record but you can tell that the video is glitchy and hes an AI. This needs to be shared to everybody so we can be more careful in the future #defi #crypto #uniswap pic.twitter.com/Q7Fu1nnD3h

— The DeFi Zeus (@DefiZeus) December 11, 2020

When the first rebase was supposed to happen on Friday, it didn’t. The developers of the project went AWOL and deleted their Twitter and Telegram users while others noticed that 600 ETH worth of liquidity was drained from the DeFiB pool. Weirdly, it seems that some of the lost funds were distributed back to the affected users. A bit later, there was iBase which is another rebasing coin and many believed that this would work out well because it was founded by a developer of a long-standing YF project which existed in a legitimate capacity over the past few months.