- TeddyDoge (TEDDY) has dropped to almost nothing, with the scammer who orchestrated the shambles walking away with millions of dollars.
- The project is a “soft rug pull,” according to blockchain security firm PeckShield.
- Addresses linked to the project traded TEDDY for wrapped BNB, which was then traded for over 10,000 BNB and $2 million BUSD.
Rug pulls are simply schemes where creators take significant sums of money from investors before withdrawing it all from the liquidity pool, which causes the token’s value to decrease sharply. According to data, the price of TeddyDoge (TEDDY) has dropped by more than 99.94% in the last 24 hours, owing to the same rug pull scheme.
Along with its rival Shiba Inu, Dogecoin became a huge star in the cryptocurrency world in 2021, but many other copycats were not as successful. One of them is TeddyDoge (TEDDY).
Investors were alarmed when wallets linked to Teddy Doge’s BNB Chain developers sold over $4.5 million worth of its TEDDY tokens for other cryptocurrencies over the weekend.
Over the weekend, wallets associated with Teddy Doge’s deployer contract swapped thousands of wrapped BNB tokens, an Ethereum-based BNB counterpart, for TEDDY tokens, according to a report released on Monday by security company PeckShield.
The concept is a “soft rug pull,” claims blockchain security company PeckShield. According to the business, the deployer of the contract boosted and dumped the price of the cryptocurrency.
10,000 BNB tokens valued $2,591,573 and $2 million worth of Binance USD (BUSD) stablecoins were taken by whoever was responsible for the rug pull. Currently, the assets are being moved to the Binance exchange.
Additionally, it discovered a connection between TeddyDoge and Half Pizza, a Binance Smart Chain (BSC) platform that bills itself as a decentralized autonomous community with rewards (DRAC). The meme coin is a DRAC network initiative, an independent Ethereum public chain. DRAC’s official Twitter account tweeted that the cross-chain bridge had been stopped.
A “gentle” rug pull, according to South Korean blockchain security company Sooho, is what the initiative is. Jisu Park, CEO of Sooho, stated that it appears that the distribution allotted to the manager’s account was divided and sold in bulk rather than by breaking the system. “It’s a rug, not a hack. But since it’s uncertain whether they’ve given up, we can refer to it as a “softrug.”
Due to their influence over the project’s liquidity pools, the rogue developers made this possible. Developers initially seed both sides of a token pair in liquidity pools, which are held by smart contracts on decentralized exchanges like PancakeSwap.
Decentralized financing allows for the option for bad actors to “liquidity steal” or take money away from a certain enterprise. Smart contracts also allow developers to cover up problematic backdoors.
Soon after, another cryptocurrency exchange, BitMart, declared that all TEDDY-related functionality would be suspended due to technological improvements.
DRAC claims that the team is currently “actively discussing” with BitMart the next step to switch out the new DRAC tokens for TEDDY tokens.
Another meme coin based on the popular “Squid Game” Netflix series was Squid Game (SQUID), which mysteriously lost all of its value in November of last year.