According to security firm PeckShield, Corner’s native crypto asset CornerChain (CNR), a blockchain network that claims to provide ledger services to businesses, has performed “rugpull”. Altcoin price first showed a sharp rise, then crashed. Here are the details…
Altcoin project rose, then fell 99 percent
The CNR token hit an all-time high of $0.27 on September 6. It fell 99.5 percent shortly after. The BNB Chain-based token is up nearly 149,000 percent from its all-time low. Corner Chain trades on PancakeSwap (V2), a popular decentralized exchange (DEX). Allows BEP-20 token swaps on BNB Chain. Pancakeswap V2 is the largest exchange in the BNB Chain ecosystem and one of the best DEXs in terms of market share.
#PeckShieldAlert PeckShield has detected Cornerchain $CNR has dropped 99.5%. https://t.co/DzI5qJO5bU
The contract is created by @neotericfinance pic.twitter.com/xomGJmvrdw— PeckShieldAlert (@PeckShieldAlert) September 6, 2022
Users can trade against a liquidity pool thanks to the exchange’s automated market maker (AMM) architecture. Cornerchain’s Twitter consists of nothing but the BSC contract address, which was published on August 24. It reveals a meager account with most tweets deleted. Responses on Twitter revealed that most users were complaining about not being able to sell their CNRs. A malicious actor may limit the ability of some investors to sell the coin.
These sell limits are illustrative indicators of a fraudulent project. Rug pull is a process in which tokens are pumped before a project disappears with funds. This rising altcoin then falls and leaves investors a worthless asset. Rug pulls occur when dishonest developers create new crypto tokens, inflate their value, and extract as much value as they can before abandoning them when their value reaches zero. Rugpull transactions are a form of decentralized finance (DeFi) exploit and the most common exit scam.
Previous rugpull events
Contests have been observed in cryptocurrency in areas such as decentralized finance (DeFi), NFTs, Web3, and various metaverse resources projects. In 2021, rugpull received over $2.8 billion in cryptocurrencies from victims, according to Chainalysis. It accounted for 37 percent of all cryptocurrency scam revenue in 2021. The emerging DeFi space is prone to rugpull scams due to the lack of intermediaries involved in transactions and the potential for huge returns.
Additionally, many new cryptocurrency projects are starting in the same place. A new, attractive token will emerge, and investors will pour money into the project in hopes of increasing its value, making early detection of such scams even more difficult. As we have previously reported as Kriptokoin.com, Polygon-based Web3 lifestyle sports application Dragoma, which combines GameFi and SocialFi elements, has committed such a scam.
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