The cryptocurrency community is on edge as the aftermath of a rug pull by Safereum unfolds. This incident has raised concerns among blockchain security experts, as the developers made off with approximately $1.3 million worth of funds, leaving investors in dismay.
Unveiling the Exit Scam
On October 23, CertiK, a renowned blockchain security firm, alongside other analysts, uncovered the exit scam orchestrated by the Safereum team. After unlocking the token supply, they sold over 600 ETH worth of holdings, totaling $1.3 million. This swift execution caused the price of the Safereum (SAFEREUM) token to plummet by a staggering 94%. The suspected developers used the token deployment address “safereum.eth” to unlock the token supply and distributed the stolen funds across multiple wallets.
“A rug pull is a type of scam in which the developers of a cryptocurrency project abandon the project and abscond with investors’ funds,” explains a blockchain expert.
Deception in Fundraising
Alarming revelations show that the rug pull occurred soon after the team raised approximately $600,000 for a derivative token called “Safepad.” These funds are believed to constitute a significant portion of the stolen amount, totaling around 720 ETH (equivalent to $1.27 million).
The aftermath of the scam highlighted a considerable decline in SAFEREUM’s trading value. CoinMarketCap data reveals that the token is currently trading at $0.0000008, marking a devastating 94.1% decrease from its previous trading value of $0.000014.
Promises of Guaranteed Security and Influencer Allegations
Safereum, which was introduced earlier this month on the Ethereum blockchain, marketed itself as a meme-based cryptocurrency with “guaranteed security.” The project aimed to bring the crypto space back to its roots and reinstate the essence of decentralized memecoins. Prior to the rug pull, Safereum touted the auditing of its smart contracts by five different companies.
However, the aftermath also shone a light on the alleged involvement of crypto influencers in promoting the Safereum project. Several so-called influencers have been called out for their roles in enticing unsuspecting users to deposit funds into the platform. “@Shiaholic_ETH,” one of the users promoting the project, now faces accusations of funding the developer wallet behind the scam. Additionally, the pseudonymous user “ProTheDoge” received scrutiny for their promotion of the scam project, with critics pointing out their lack of due diligence.
“This unfortunate event serves as a cautionary tale for the cryptocurrency community. It is crucial for users and investors to exercise extreme caution and thoroughly research any project before contributing funds,” advises a prominent industry expert.
