Crypto project Safereum is under heavy scrutiny following accusations that its developers carried out a ‘rug pull’, resulting in the depletion of user capital and a significant drop in their coin’s valuation.
Keypoints
- Reports suggest that Safereum’s developers unexpectedly liquidated substantial quantities of the SAFEREUM currency.
- This maneuver led to an alarming dip in SAFEREUM's market value, plummeting more than 90%, falling from $0.000014 to a mere $0.0000008.
- Accusations state that the developers secretly made available and subsequently offloaded over 600 Ether’s worth of SAFEREUM tokens, equivalent to about $1.27 million.
- Part of this capital originated from a recent fundraising effort, amassing $600,000, geared towards a linked asset called Safepad.
- Blockchain intelligence agencies, such as CertiK, sifted through transaction data to substantiate the dubious dealings.
- As a result of the shakedown, Safereum’s official Twitter presence vanished without a trace.
- Before this mishap, Safereum had been vigorously backed by social media personalities, amplifying its reach.
- This scenario mirrors a classic exit swindle where creators dissipate funds and vanish post-hype.
Certified investigations from firms like CertiK indicate that Safereum’s developers rapidly dumped over 600 Ether in SAFEREUM tokens, totaling roughly $1.27 million by today's market standards. This token disposal sparked a catastrophic nosedive of over 90% in the token’s value within mere hours.
#CertiKSkynetAlert ????
We can confirm that @Safereumio has conducted an exit scam for $1.3m
Eth: 0xb504035a11E672e12a099F32B1672b9C4a78b22f
safereum.eth unlocked Safereum tokens and sold. Additionally $597k was raised for the project’s SAFEPAD token. https://t.co/aAxjcEmdcH
— CertiK Alert (@CertiKAlert) October 23, 2023
Just hours post its fundraising drive for the related Safepad token, where it raised $600,000, the murky transactions took place, indicating the liquidity wipeout and subsequent disappearance equate to an exit scam orchestrated by its makers.
Positioned as a meme-centric digital asset, Safereum emphasized its dedication to security, yet its Twitter account and Telegram channel have since maintained radio silence.
Several key social media influencers played a role by passionately promoting Safereum pre-launch, a marketing move that drew in many who weren’t aware of the risks. Critics now point fingers at these promoters for not digging deeper before endorsing.
It appears influencer ProTheDoge has again become embroiled in dubious promotions as an official collaborator of the project.
On this occasion, it was Safereum that executed a rug pull, converting over 730 ETH ($1.2M) in an exit fury.
0x67c8423a7709aDB8ED31c04DcbB0C161637b807F pic.twitter.com/o5qi9rmC3e
— ZachXBT (@zachxbt) October 23, 2023
This situation serves as yet another stark reminder of the perils faced within the decentralized finance (DeFi) realm. Users are strongly advised to tread cautiously when exploring fresh DeFi ventures, especially those with anonymized teams.
Regulatory entities should possibly increase their scrutiny of these potential scams, often enhanced via social media platforms reaching uninformed individual traders. At present, those affected by Safereum’s implosion have scant options to retrieve their investments.
This deceitful exodus scam adds to the mounting tally of DeFi frauds reported in 2022. The crypto world continues to ponder if more robust safeguards will arise to protect everyday investors.
