Home News Safereum Rug Pull: What Are the Signs of a Cryptocurrency Exit Scam?

Safereum Rug Pull: What Are the Signs of a Cryptocurrency Exit Scam?

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Safereum Rug Pull: What Are the Signs of a Cryptocurrency Exit Scam?

CertiK, a blockchain security firm, raised the alert on October 24, 2023, regarding a rug pull carried out by the development team of Safereum, a new cryptocurrency project. A rug pull is a sort of exit scam in which the project’s developers abruptly take all of the project’s liquidity, leaving investors with worthless tokens.

According to CertiK, the Safereum developers unlocked and sold around 600 ETH worth of SAFEREUM tokens at the time, which amounted to over $1.27 million. This enormous dumping of tokens caused the SAFEREUM price to drop by more than 90% in just a few hours.

The Safereum developers subsequently deleted the project’s official Twitter and Telegram accounts, implying that the project had been abandoned.

This episode should serve as a warning to bitcoin investors. It is critical to be skeptical of new ventures, particularly those that make unrealistic promises or are promoted by social media celebrities. Before investing in any cryptocurrency project, investors should always conduct their own research.

Here are some pointers to help you avoid exit scams:

Projects that make unrealistic claims, such as assured returns or large yields, should be avoided.
Conduct your own research on the project team and the code.
Look for initiatives that have undergone audits by credible security companies.
Be wary of ventures heavily advocated by social media influencers.
Only invest what you can afford to lose.
If you feel you have been a victim of an exit scam, you should notify the appropriate authorities. You could also submit a complaint with the cryptocurrency exchange where you bought the tokens.

What can be done to avoid future departure scams?

There are several measures that can be done to avoid future exit frauds, including:

Increased regulation: Governments and authorities worldwide must play a more active role in regulating the cryptocurrency business. This might include making bitcoin projects register with regulators and disclosing information about their team members and financial situation.
Improved security audits: Before launching, cryptocurrency projects should have their code evaluated by credible security organizations. This can aid in identifying and repairing any flaws that scammers may exploit.
Investor education: Investors must be informed on the risks associated with investing in cryptocurrencies, as well as how to avoid exit scams. This could be accomplished through public awareness campaigns and educational materials.
We can help to make the Bitcoin sector safer for investors by adopting these steps.

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