Community outrage and accusations come as BNB Chain takes the blame
Last night, the DecentraWorld token saw an alarming price drop. This happened when the founders depleted the BNB treasury and derailed the project. As a result, the scammers made off with more than $1 million worth of BNB tokens.
DecentraWorld rug throw drains millions of funds
Last night, Twitter erupted with alarms as DecentraWorld’s native DEWO token lost most of its value in a matter of seconds. The price drop was unexpected as a project, and its native token had seen a very positive development trend up to that point.
Unfortunately, as it later emerged, the price drop was the result of a rug flip worth more than $1 million at the time. The founding team of DecentraWorld emptied the project’s treasures and stole 3,127 BNB.
Some Twitter users alleged that the rug pull occurred just hours after SafeMoon whitelisted DecentraWorld’s address as a partner of Safeswap. Even if this is the case, SafeMoon officially forbidden the wallet address associated with the rug pull.
As the DEWO token price plunged significantly, users and token holders started trying to investigate what was going on. Unfortunately, all official links and social media profiles of the project have been removed. Of course, this caused massive outrage among members of the community.
Community outrage and DecentraWorld V2
A group of users decided to start spin-off projects against the background of millions in stolen funds and widespread community outrage. While some members of the community are still bitter after losing thousands of dollars worth of DEWO tokens, others are eager to try again.
DecentraWorld V2 claims to be completely owned by the community. Still, it’s important to note that investing in such derivative projects is risky, especially after a rug pull of this magnitude.
BNB Chain takes some of the heat
Twitter erupted with hateful comments about DEWO’s price drop and DecentraWorld rug recall. However, not all of the negative sentiments were directed at 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 that an altcoin on BNB Chain has become resistant. One of the most impressive recent cases was that of the SQUID token. The project gained popularity when 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 reached an all-time high of $2,860, it eventually lost 99.9% of its value. This happened right after the project developers cashed in and removed the project’s website and social media profiles. Sounds familiar?
Considering the magnitude of the losses in both cases, it is imperative that cryptocurrency enthusiasts thoroughly investigate the project they invest in. While the DecentraWorld founders settled for just $1 million in stolen funds, they could have taken the scam further, hoping to further increase the value of the DEWO token, as was the case with SQUID.
However, one must also wonder where the influence of BNB Chain really ends. Anyone can launch a token and users are free to do so. The question is whether anyone should invest in it, and maybe this all boils down to education.
DappRadar will continue to monitor the crypto space as the bear market puts more scammers and fake projects in the spotlight. Check out this helpful article to learn how to stay safe in the crypto space and protect your investments. Also, you can follow DappRadar on Twitter to get the latest crypto updates first.