Disclaimer: The opinions expressed by our writers are their own and do not represent the views of U.Today. The financial and market information provided on U.Today is intended for informational purposes only. U.Today is not liable for any financial losses incurred while trading cryptocurrencies. Conduct your own research by contacting financial experts before making any investment decisions. We believe that all content is accurate as of the date of publication, but certain offers mentioned may no longer be available.
According to Colin Wu, a prominent crypto journalist, an educational project called XIRTAM has recently conducted a rugpull worth 2,000 ETH, which is equivalent to $3.5 million. The project was reportedly funded by CultDAO, which just seven days ago announced its support for XIRTAM, stating that the project had raised $2 million for its token presale.
The news of XIRTAM's rugpull has had a significant impact on CultDAO token's price, which has fallen by more than 30% in just one day. This comes after the token experienced a surge of 150% yesterday, following a tweet by Elon Musk that just said "Cult / Culture." Unfortunately for CultDAO, the gains made from this tweet have now been offset by the news of XIRTAM's scam.
Arman ShirinyanBinance has responded to affected users' appeals and has frozen the funds transferred to the exchange by the fraudulent XIRTAM project. CultDAO has not yet had any public reaction to the incident.
What is a rugpull?
A rugpull is a type of fraudulent activity in which the project team or developers lure in investors by creating hype and excitement around their cryptocurrency or token. Once the project gains substantial funds or reaches a certain market cap, the team liquidates their holdings without warning and vanishes, leaving investors with worthless tokens or coins.
Alex Dovbnya
Vladislav Sopov
Dan Burgin