Coinbase has a rug pull problem with 3 projects
US crypto exchange Coinbase has decided to remove instructions to buy at least three crypto tokens after a warning surfaced saying the safety of investors’ funds and networks is at risk.
Coinbase removes 3 token purchase instructions
Rug pull occurs when cryptocurrency developers unexpectedly abandon a project, taking investor funds with them.
Jaclyn Sales, a spokeswoman for Coinbase, told Reuters that the links were removed from the crypto exchange’s website after Reuters became aware of them this week. There will also be an upgrade in protection on auto-generated websites, she said.
The sales department said the pages were automatically developed based on information provided by crypto market data provider CoinMarketCap. For its part, CoinMarketCap commented that it does not know the pages highlighted by Coinbase. Shaun Heng, vice president of operations and growth at the data site, was quoted as saying that there is no partnership between CoinMarketCap and Coinbase.
In a statement, Coinbase said that regarding the recent incident, it decided to “build a stronger disclaimer for auto-generated pages” and also to develop a “takedown process” for all other websites where CoinMarketCap has been flagged as potentially fraudulent .”
Coinbase has a rug pull problem on 3 projects
One of the Coinbase withdrawals has DeFi100 directing the exchange’s users to CoinMarketCap to check where it can be bought. The data provider flagged the project with a warning that it had received “many reports” claiming that “this project was terminated as a scam”.
The other two projects are Mercenary and SQUID, the latter being named after the popular Netflix show Squid Game.
The Reuters article states that the coins will only be featured on pages offering investment advice and will not be listed or available for purchase through Coinbase’s app or wallet. The exchange reviews each of the three coins on its website and says neither is supported.
Earlier this month, some traders criticized the exchange for some of its listing decisions. Popular crypto trader, analyst, and podcaster Cobie tweeted that by allowing remittances for cryptocurrencies like Pawtocol (UPI), Coinbase is actually supporting “an attack, corrosion, to undermine quality and trust in the industry.” As of Friday morning at 11:09 UTC, UPI had a market cap of $24 million, according to data from CoinMarketCap.com.
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