DecentraWorld Rug Pull Drains Over $1 Million in BNB

May 26, 2022
Dappradar , Security , Security Breaches
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Community outrage and accusations ensue as BNB Chain takes the blame

Last night, the DecentraWorld token saw an alarming price drop. This happened as founders drained the BNB treasury and rug pulled the project. As a result, the scammers ran off with over $1 million worth of BNB tokens.

Summary:

DecentraWorld rug pull drains millions of funds

Last night, Twitter erupted with rug pull alarm bells as DecentraWorld’s native token DEWO lost most of its value in a matter of seconds. The price drop was unexpected as the project, and its native token had seen a very positive development trend up to that moment.

Unfortunately, as it later transpired, the price drop resulted from a rug pull worth over $1 million at the time. The founding team of DecentraWorld drained the treasuries of the project and stole 3,127 BNB.

Source: Twitter

Some Twitter users alleged that the rug pull happened just hours after SafeMoon whitelisted the DecentraWorld address as a Safeswap partner. Even if this is the case, SafeMoon officially banned the wallet address associated with the rug pull.

As the price of the DEWO token took a significant dive, users and token holders started trying to investigate what was going on. Unfortunately, all official links and social media profiles for the project were deleted. Of course, this led to massive outrage among community members.

Community outrage and DecentraWorld V2

A group of users decided to start spin-off projects against the backdrop of millions in stolen funds and widespread community outrage. While some community members are still bitter after losing thousands of dollars in DEWO tokens, others are eager to give it another try.

DecentraWorld V2 claims to be completely community-owned. Still, it’s important to note that investing in such spinoff projects is risky, especially after a rug pull of this magnitude.

BNB Chain takes some of the heat

Twitter erupted with hateful comments regarding the DEWO price drop and DecentraWorld rug pull. However, not all of the negative sentiments targeted the project itself. Some users found that BNB Chain is also to blame for making this scenario possible.

Unfortunately, this is not the first time an altcoin on BNB Chain gets rugged. One of the more impressive recent cases was that of the SQUID token. The project gained popularity as Squid Game fans started investing, some of them thinking there was an official affiliation between the Netflix show and the token.

While the SQUID token hit an all-time high of $2,860, it eventually lost 99.9% of its value. This happened right after the project’s devs cashed out and took down the project’s website and social media profiles. Sound familiar?

Considering the magnitude of the losses in both these cases, it is imperative for crypto enthusiasts to research the project they invest in thoroughly. While DecentraWorld founders settled for only a million in stolen funds, they could have pushed the scam further, waiting to boost the value of the DEWO token even further, as was the case with SQUID.

However, one also needs to wonder where the influence of BNB Chain really ends. Anybody can launch a token and users are free to do so. The question is whether someone should invest in it, and perhaps all this comes down to education.

DappRadar will continue monitoring the crypto space as the bear market pushes more scammers and fake projects into the spotlight. Check out this useful article to learn how to stay safe in the crypto space and protect your investments. Additionally, you can follow DappRadar on Twitter to get the latest crypto updates first.

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