Key takeaways :
- Safereum Cryptocurrency Faces Massive Liquidity Drain After $600,000 Fundraising
- Safereum unlocked SAFEREUM tokens, swapped for ETH, and distributed to multiple wallets.
Just hours following the completion of a $600,000 fundraising, Safereum cryptocurrency encountered a significant liquidity drain, described as a ‘rug pull.’
This unexpected outflow resulted in a staggering 94% drop in the token’s value, with developers unlocking and selling over 600 Ether (ETH) worth of assets. On October 24, the cryptocurrency community was shocked by blockchain security experts uncovering an alleged “exit scam” within Safereum.
CertiK, a reputable blockchain security company, raised the alarm about a rug pull executed by the project’s development team.
Safereum, initially launched as a memecoin crypto project on the Ethereum [ETH] blockchain at the beginning of October, witnessed its developers unlocking the token’s supply through the token deployment address safereum.eth, subsequently draining more than 600 ETH.
Safereum, initially marketed as a meme-inspired crypto project prioritizing security, has ceased activity on its official Twitter and Telegram channels since the incident.
Prior to the incident, numerous crypto influencers on Twitter played a significant role in promoting Safereum, contributing to its user base. Critics argue that these promoters failed to conduct adequate due diligence.
Prominent crypto ‘investigator’ ZachXBT raised concerns about social media influencer ProTheDoge, who endorsed Safereum as an official partner. ZachXBT pointed out that
ProTheDoge had previously promoted a project known as “BAYC 2.0,” which was criticized as ‘low cap garbage.‘
In a post, another X user by the username, Died.eth stated, “Safereum/safepad just executed the most astonishing rug pull I’ve ever witnessed. After concluding their 700e safepad presale, they offloaded over 600e of safereum and safepad in one final exit.“
Notably, the official Safereum account on X (formerly Twitter) has been removed. A pseudonymous NFT trader known as Died.eth characterized the Safereum incident as one of the most extreme “rug pulls” they had encountered.
This serves as another warning within the high-risk decentralized finance (DeFi) realm. Users are strongly urged to exercise vigilant discretion when engaging with emerging DeFi projects led by anonymous teams.
It’s becoming increasingly evident that regulators should monitor and address these scams that gain traction through social media, often targeting uninformed retail investors. Unfortunately, for Safereum users, the prospects of recovering their lost funds remain limited.
