Investing in DeFi projects brings high returns, but of course the risks are just as high. The recent incident with WhaleFarm, a brand new DeFi project that has been playing rug-pull, has set the alarm bells on a number of “citrus” projects emerging in the cryptocurrency market.

The term rug pull roughly refers to the new trickery of setting up a trap to attract fry. These tricks often result in developers leaving the project abruptly and taking investors’ money.

A new carpet on the market

WhaleFarm is a brand new DeFi project with a completely anonymous development team. The project kicked off not long ago and quickly stole more than $ 2 million from investors on the latest carpet move. After that, the value of the native cryptocurrency collapsed by almost 100% within minutes.

WhaleFarm was launched earlier this month and started making fantasies for investors by opening staking on multiple coins including BNB, BUSD, USDT, BTC, ETH, ADA, DOT, and LINK, and promising up to 7,217.848% APY to earn.

While this percentage may sound too virtual compared to reality, the project has actually shown momentum and its token – WhaleFarm Token – has steadily increased in price. However, this is a scam.

As the famous crypto commentator – Mr Whale – pointed out, the signs that WhaleFarm is a scam are clear. Apart from the promised 7,217.848% APY, the development team is completely anonymous. The same group deleted the official Youtube Channel and the Telegram group and demonstrated a carpet-pulling operation. According to initial estimates, the stolen sum amounts to around 2.3 million US dollars.

Mr. Whale said:

“WhaleFarm Token is the latest scam that has played the carpet game and left investors. It is estimated that they stole more than $ 2.3 million.

The signs of fraud are too obvious, such as:

• The team is completely anonymous
• Very nice promise of 7.2 million percent profit
• The token price is now down 99.99%
• Youtube Channel is down
• Telegram group was deleted “

Cases like this are not uncommon, especially in the cryptocurrency market and DeFi. Hackers can fully attack funds and transfer them to other chains for liquidation as blockchain developers increasingly favor cross-chain. There have been many similar cases in the past. One of them came from TurtleDex, a decentralized storage platform that siphoned off $ 2.5 million in Binance Coin (BNB). Before that was Meerkat Finance, which stole around $ 30 million from BUSD and BNB from investors. Uranium Finance was one of the most recent examples in late April, with about $ 50 million flown without wings.

Veronica

According to the AZCoin News

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