Investors lose more than $2 million in ‘rug pull’ DeFi project WhaleFarm

Unsuspecting investors fell prey to Decentralized Finance (DeFi) project WhaleFarm, which offered an unrealistically high annual percentage yield.

With this, the project, which hijacked millions as its native token’s value fell by almost 100% in a matter of minutes, becomes the latest addition to the fast-growing list of exit scams.

It can be recalled that recently, WhaleFarm’s anonymous developers introduced yield farming – a staking opportunity that allows investors to lock up their crypto in return for high rewards.

After this, the project witnessed unprecedented growth, as its native WhaleFarm token surged in value, even trading at $215 before the “intentional capitulation” happened.

Fast, in just a matter of minutes

In just a blink of an eye, the scammers took the opportunity to carry out their evil plans that targeted investor funds.

They did their malicious maneuver fast and in just a matter of minutes, they were able to redeem all their tokens all at once. This caused the price to plummet severely. Meanwhile, investors were not given time to pull out their funds.

Following this, just like what a typical “rug pull,” WhaleFarm deleted its official Twitter account as well as its Telegram group.

A rug pull is a devious maneuver in the cryptocurrency industry where developers abandon a project and run away with investors’ money.

The signs were there

A renowned crypto commentator gave his take about the incident, pointing out the most obvious thing that made the project a booby trap for unsuspecting investors.

While it was true that the project offered numerous staking options that included bitcoin, ethereum, binance USD, binance coin, tether, chainlink, cardano and polkadot, it made a promise that is “too good to be true” when it assured users of 7,217, 848% annual percentage yield (APY).

It is presumed that investors, with this exit scam, lost more than $2.3 million.

 

Image courtesy of Cointelegraph News/YouTube

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