The cryptocurrency space has seen another rug pull from a DeFi project that promised millions of percentages in returns.
WhaleFarm, a DeFi project with a fully anonymous team that launched farming days ago, has stolen over $2 million from investors in the latest rug pull in the space. Somewhat expectedly, its native cryptocurrency’s value plummeted by almost 100% in minutes.
Launched earlier this month, WhaleFarm started with high promises for investors as it offered staking of numerous coins, including BNB, BUSD, USDT, BTC, ETH, ADA, DOT, and LINK, to earn up to 7,217,848% APY.
Although this percentage sounds too good to be true, the project actually saw some growth, and its native coin – WhaleFarm Token – surged in value.
As it sometimes happens in the DeFi space, though, especially when the promised returns are blown out of proportion, it turned out to be a scam.
As popular crypto commentator – Mr.Whale – pointed out, the warning signs were there. Apart from the 7,217,848% APY promised, the team was entirely anonymous.
That same team has deleted the Twitter page and the official Telegram group, which could serve as proof that this was indeed a rug pull. Early estimations show that the stolen amount is around $2.3 million.
As the graph below demonstrates, the WhaleFarm Token has dumped by almost 100% in minutes and currently still trades below $0.20.
As mentioned above, rug pulls in the cryptocurrency, and especially the DeFi, space are not uncommon.
One of them came from TurtleDex, which drained $2.5 million in Binance Coin. Before that was Meerkat Finance, which stole roughly $30 million in BUSD and BNB from investors.
Uranium Finance was one of the most recent examples in late April, with about $50 million gone.