Main navigation

New Meme Token on Base Gets Rugged: Here's How It Is Connected to Uniswap

Sun, 08/13/2023 - 12:10
article image
Arman Shirinyan
Uniswap's developer caught in 'rug pull' scandal involving new meme token FrensTech
New Meme Token on Base Gets Rugged: Here's How It Is Connected to Uniswap
Cover image via

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.

Read U.TODAY on
Google News

One factor that consistently mars the reputation of the crypto space is the act of "rug pulls." The latest to join the infamous list is the meme token FrensTech (FRENS), and its ties to a well-known name in the decentralized exchange world have left many in shock.

Hayden Adams, the founder of Uniswap, a leading decentralized cryptocurrency exchange, recently took a significant step by firing AzFlin, a member of the Uniswap team. The reason? AzFlin was discovered to be the brains behind the meme token FRENS. This revelation was alarming enough, but what followed raised more eyebrows in the crypto community.

Just hours after the deployment of the FRENS token on the Base network, AzFlin made a suspicious move by transferring 14 WETH, valued at approximately $25,800. Instead of using these funds for the development or promotion of the token, as is standard with most genuine crypto projects, AzFlin proceeded to sell the tokens that had been raised from the liquidity.

"Rug pulls" in the cryptocurrency space refer to situations where developers abandon a project and run off with investors' funds. These actions severely damage the credibility of the crypto world, deterring potential new investors and earning the ire of those already involved.

XRP Price Analysis for August 12

The link between a significant name like Uniswap and this dubious activity has reignited the debate on the need for better vetting processes, even within reputed organizations. Trust in decentralized systems is paramount, and incidents like these emphasize the necessity for more transparency and stricter internal controls.

Hayden Adams' prompt action in firing AzFlin signals a zero-tolerance approach toward unethical behavior, setting an example for other entities in the crypto realm. It is a reminder that the cryptocurrency world, while promising tremendous rewards, is also fraught with risks.

article image
About the author

Arman Shirinyan is a trader, crypto enthusiast and SMM expert with more than four years of experience.

Arman strongly believes that cryptocurrencies and the blockchain will be of constant use in the future. Currently, he focuses on news, articles with deep analysis of crypto projects and technical analysis of cryptocurrency trading pairs.