Lucky Star Currency (LSC), an altcoin token based on the Binance Smart Chain, has reportedly fallen victim to a rug pull, as reported by blockchain security firm PeckShield. The developer of LSC, a relatively new cryptocurrency token, has managed to deceive its users, resulting in a loss of $1.11 million and causing the value of the altcoin to plummet almost to zero.
Rug Pull Leaves Investors Devastated
The monitoring site Beosin Alert shared the news on Twitter, stating, “Lucky Star Currency $LSC on BNB Chain rugged for $1.1M. LSC price dropped from $2.8 to $0.04.” This rug pull has led to a staggering loss in value, with the altcoin’s price decreasing by more than 98%. This incident highlights the alarming increase in malicious scams within the cryptocurrency and decentralized finance (DeFi) industry.
“Lucky Star Currency $LSC on BNB Chain rugged for $1.1M. LSC price dropped from $2.8 to $0.04.” – Beosin Alert
The fraudulent developer responsible for the rug pull dumped a total of 3 million LSC tokens from two separate contracts, ensuring a profit in Binance USD (BUSD). Transaction records indicate that one address sent around 1.4 million tokens to the exit address, while another address was accountable for 1.65 million tokens.
Implications for LSC and Rug Pull Scams
Following the rug pull, LSC token is currently being traded at $0.01036 with a market capitalization of $101K, compared to its previous valuation of $28.7 million. Rug pulls or exit scams occur when deceitful developers create a new cryptocurrency token, drive up its price through hype, and then drain the funds of unsuspecting investors before disappearing. Unfortunately, this results in the token’s value dropping to zero.
A 2022 report from blockchain risk monitoring firm Solidus Labs revealed that 15 new scam tokens are detected every hour, and nearly two million investors have lost funds to rug pull tokens. The report also highlighted that “12% of all Binance Smart Chain-based tokens are rug pulls.”
According to Datawrapper, a database of cryptocurrency rug pulls and scams, there have been four reported crypto rug pulls this month alone. In a similar incident last week, the CommEx token experienced a coordinated withdrawal of liquidity in a rug pull, resulting in the developer draining approximately $154,000 worth of investor funds.
