One of Dogecoin’s most infamous impersonators, Teddy Doge has been accused of Rug Pull by blockchain security firm PeckShield.
The project’s token TEDDY has plummeted to near zero as the scammer transferred roughly 10k BNB tokens [$2.6 million] and $2 million Binance USD stablecoins via the Binance exchange.
According to the leading security researchers, the project is a “Soft Rug Pull.” In the following thread, PeckShield said the scammer deployed the contract and transferred a large quantity of Teddy to an address before pumping and dumping the token.
In a soft rug pull, rather than dumping all tokens at once, founders only dump their tokens whilst pretending that they are still invested in and are supporting the project.
These kinds of rug pulls are often easy to pull off and difficult to detect, making them more insidious.
According to its official website, Teddy Doge claims to be a multifunctional swap that integrates exchange, transaction, wallet, farm, and chart. The swap called TeddySwap is a blockchain-based automated market-making [AMM] decentralized exchange [DEX].
That said, PeckShield also warned that the Dogecoin knock-off might be linked to Half Pizza [PIZA] which is also rumored to be a scam project.
Half Pizza is a Binance Smart Chain platform that describes itself as a decentralized rewarding autonomous community [DRAC].
This is not the first time copycats of the world’s most popular meme coin have ended up being frauds. Previously, another dogecoin offshoot was found to be running a Honeypot racket.
Another Dogecoin Impersonator Rug-Pulled
As uncovered by PeckShield, developers of DogeMother rug pulled after promising users of guaranteed rewards for purchasing the token.
Honeypot scams typically trick users into buying a certain cryptocurrency with grandiose promises only to prevent them from selling.
As the name suggests, their withdrawals get stuck in a contract since only whitelisted users are allowed to withdraw their funds. Most of such tokens usually appear on the BNB Smart Chain, which allows easy creation of new tokens because of cheap fees and a majority of these have turned out to be scam coins.
Despite the meme coin frenzy having fizzled out, scammers are still looking to capitalize on it by luring new investors with dubious tokens.