A Polygon-based Yield Aggregator Blur Finance’s developers allegedly disappeared with $600,000 worth of funds from its Polygon and BNB Chain contracts.
Shedding more light, Security firm PeckShield tweeted on August 10 that the rug-pulled protocol’s stolen amount was withdrawn within minutes and its social media channel had been deleted. Moreover, its native token BLR has lost nearly its entire value.
The link to the protocol’s Discord channel displayed an “invite invalid” message, and its website returned an invalid certificate.
According to online sleuths, Blur Finance launched on BNB Chain and had over 754 holders. On July 7, a contract was created for integration between Blur and Polygon, projecting annualized yields of some 4,000%.
Last week, the price of the BLR token reached its all-time high at 6 cents. Following the rug pull, it plummeted 99% and at press time is exchanging hands at $.00064.
The move is a classic example of a scam executed by developers who first launch decentralized finance [DeFi] applications and utilize social media marketing tools to attract people before issuing a token and listing it on a decentralized exchange [DEX].
After investors have bought the tokens in the hopes of a positive return, the developers shut up shop and vanish.
Another Polygon-Based Web3 Gaming App Rug Pulled
A few days back, a newly launched decentralized gaming project on Polygon, Dragoma was too abandoned. PeckShield flagged an alleged rug pull of over $1 million by Dragoma developers. $420,000 USDT and 880,000 MATIC tokens were reportedly found missing from the polygon contract.
As reported by TronWeekly, on July 25, Teddy Doge developers made off with $4.5 million in a soft rug pull. In accordance with the report, 30 billion TEDDY tokens were swapped for BNB and BUSD and then cashed out through the Binance exchange.
In soft rug pull scams, the developers conduct legitimate work on a blockchain and then drain the liquidity pools from the project, essentially “pulling the rug” from the investors and causing a sharp fall in related tokens.
In both cases, the project developers would aggressively market their product and offer high return promises. Investors who fall for it suffer unexpected losses.