Martin Shkreli’s New Token Drops 90%, Rug Pull Suspected

JPMorgan CEO Called Bitcoin and Other Cryptos “Ponzi schemes"
  • The price fell when a mysterious wallet dumped a large quantity of the cryptocurrency.
  • Martin Shkreli Inu has been linked to the Web3 venture Druglike.

The new cryptocurrency token created by Martin Shkreli looks to have been abandoned. The value of Martin Shkreli Inu, a cryptocurrency established last month by the infamous “Pharma Bro,” which was once worth fractions of a cent, dropped by more than 90% on Friday, according to statistics from Binance. The price fell when a mysterious wallet, assumed to belong to Shkreli, dumped a large quantity of the cryptocurrency.

When asked about the drop on the messaging app Discord, a user assumed to be Shkreli replied, “I was hacked.” When asked for comment, a Shkreli spokesman refused.

Based on data compiled by blockchain analytics firm Etherscan, it seems that early on Friday morning, a cryptocurrency wallet account with the name 0xshkreli.eth transferred more than 160 billion tokens to an unknown wallet. As of Friday afternoon, the token lost over 60% of its value.

Drawback or Vulnerability?

Martin Shkreli Inu has been linked to the Web3 venture “Druglike,” which Shkreli unveiled in July. He defined it as an online hub for information relevant to “early stage drug discovery projects.”

After spending time for securities fraud, Shkreli, known for increasing the price of potentially life-saving medicine, was released from jail earlier this year. When a crypto project’s team artificially inflates the price of its token and then disappears with the money, they are committing a rug pull.

To pull a rug, dishonest developers create a new cryptocurrency token, artificially inflate its price, and then cash out before the token’s value collapses to zero. A rug pull is an example of an exit scam and a decentralized finance (DeFi) vulnerability.

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