- The upcoming menace in decentralized finance (DeFi) is Soft rug.
- The malicious maneuver in the crypto industry, known as rug pull.
- The Defiant reported on another claimed soft rug involving Swipe.
The many known scams that have tortured the decentralized finance (DeFi) and exploit for some time along with another coming in the form of what is known as a “soft rug”.
Moreover, the term “rug pull” will be familiar with those that have been a dip in DeFi for some time. The malicious maneuver in the cryptocurrency industry, known as rug pull. Where the developers of crypto abandon a project and run away with an investor’s fund.
Henceforth, related extortion to plague the appearing financial landscape is the “soft rug”. It is when developers of projects simply dump their tokens and exit the venture rather than taking control of user’s belongings.
Accordingly, a soft rug is more deceptive, with founders going out of their way to build trust and a negative sense of security. At the same time, attempting to unrecognize the dumping of tokens. If this done intelligently then the users may not even know that they have done the short straw.
Recently, the Polygon-based yield farming project, Polywhale team, have announced that it would be ceasing work on the platform. After two days, token holders have found out that the project’s treasury wallet had emptied.
As posted, the Polywhale finance exit scam worth over $ 1 million. This done by selling their tokens during the latest crypto market price collapse.
Even more, the Defiant reported on another claimed soft rug involving Swipe, that developed Venus, a Binance Smart Chain’s (BSC) third-largest protocol. The members of the new Venus community rejected the allegations. Stating that it, a rumor, and the Swipe team had handled all of their tokens.
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