Rugpulls, exit scams — how we should even treat this behavior? Who’s to blame?

The real battle that is actually happening

Intro

There, there — we are not here to judge and call out but to talk, sit down and put down that torch ffs.

🤬What triggers us

Another thing, if this rugpull project, any of them literally, can gather $200K up to $1M — do you even have any basic understanding of how much money is this? It just makes my mind melt like ice cream.

✅Just some fair, good ICO examples that are out there:

Stafi $FIS — 1,015,000 USD

EasyFi $EASY — 300,000 USD

xDAI $STAKE — 950,000 USD

📊Further statistics — rugpulls

HatchDAO $HATCH — $760,000

SantaDAO $HOHO — $200,000 (26.10.2020)

Uniswipe — $375,000 / 1000 ETH (21.08.2020)

YMO — $100,000

Yearn Gold $YAU — $28,000 USD

Now we get a sum of 1,463,000 USD — some legit projects could really use those numbers, not to mention ETH Hackaton devs that can literally build whatever with <$50,000.

Those are a few examples — over the past few hours I have been given at least 20 more. Here are some tickers of other rug-pulled scams

$HOHO $ORNG $BIO $FYF $BREE $STEAM $ETNX $YAU $HATCH $HOTDOG $YEVO $TWEE $YBREE $ELON (thanks throw;)

What else can you do with $200K? A 101 explanation.

McLaren GT costs about $210,000 Source

*If you think some of the data is incorrect — post us correct KrismaChat

There is a shed of light, some hope

Bounce Finance $BOT

CHADSVC $CHADS

Xiotri $XIOT

No rug pull, constant delivery, not all of those sales are bad. Those two are definitely exceptions, but if they’re exceptions among an ocean of scams — this only proves the point made so far.

How rugpull or “exit scam” looks like? What are the implications?

Typical rugpull — chart provided by devchart

What are the implications when some bigger project tries to exit scam? Oh boy.

Sushiswap has started as Uniswap’s fork. Later on, gathered enough traction and allowed to successfully accumulate about $1.3 billion worth of digital assets locked up in the SUSHI/ETH pair liquidity pool.

Short story:

SushiSwap’s co-founder, Chef Nomi, had a change of mind, and following Charlie Lee’s decision to make Litecoin more independent from its creator — Nomi has cashed out his tokens — worth some $14 million in Ethereum

$14,000,000, that’s enough to make an actual move on the major token, downwards in this case, and as further on — case seems to be solved by now, Chef Nomi has refunded the total amount, Sushiswap has changed its owner ever since, but that’s another story.

However, people were shaken out during the event in a series of multiple micro-events, by selling other crypto assets. Since during this event alone Ethereum’s price dumped from $476 to $320, we are talking here about millions of dollars in liquidations, to say the least. This won’t be anyhow refunded up to this date to some of the market participants that got harmed in the process, which is worth a mention.

📚You could literally, make your own DECENT project

😥Another much sadder take is

The real problem

Okay, so let’s face the real issue now, there are few.

😔Some people will never come back to crypto because they just lost money in a dumb way. Some will

📉Thieves that did a rugpull will dump the underlying asset for money — they won't care, they got it for almost free, and we are talking here about thousands of Ethereum to be dumped.

🤢By allowing those scams to get funded — you are not only allowing them to scam you out but also it means you are agreeing untested, unaudited BS to get at your doors and you’ll be thankful that it came up to steal from you. Would you treat the burglar the same way IRL?

💔Like any kind of KOL, influencer, you get reputational damage, part of the audience will never come back to you

✨Solution?

*— so I will just stick to writing these posts

The finishing touches — conclusion time

Stay safe,

next time I see you shilling a rug-pull coin, I will call you out,
as understanding, I can be here, I won't hesitate next time I see it happening. There has to be a red line to all this insanity.

Twitter: https://twitter.com/KRMA_0

Telegram channel: https://t.me/krismacrypto

Telegram group: https://t.me/krismachat

All the best,
Krisma