Shiba Inu Issues Critical Warning After Rug-Pull on Shibarium

Investors of Beast Token (BEAST), a Shibarium-based token, suffer huge losses after the team behind the token executed a rug pull.

Shibarmy Scam Alerts, a Shiba Inu community-driven scam alert channel, reported the incident over the weekend in a post titled “Beast Token Rug Pull on Shibarium.”

According to Shibarmy Scam Alerts, the team closed all communication channels on Telegram after draining investors’ funds. At the time of the tweet, the channel noted that the team behind BEAST had not offered any compensation to affected victims. Notably, the community-driven channel provided a link to the token’s transaction activity on DEX Screener.

Beast Token Transaction Activity

According to DEX Screener, BEAST was listed on Shibarium-based decentralized exchange ChewySwap at 11:58 AM (UTC) on September 20, 2024, under the trading pair BEAST/WBONE.

At the time, the team added liquidity of 7 million BEAST and 2,950 Wrapped BONE. Shortly after its launch, BEAST captured investors’ interest, with many people committing between $20 and $300 to acquire the token. Two hours later, the team removed the token’s liquidity, resulting in the massive crash of BEAST’s price.

It bears mentioning that BEAST’s price surged to a high of $0.001133 immediately after its launch, marking a 500% increase in 15 minutes. However, following the liquidity removal, the token’s price plummeted to $0.000002770, representing a decline of 99.75% from its peak price. According to DEX Screener data, BEAST has a market cap of $28 at the time of writing.

Shiba Inu New Warning

In the meantime, Shibarmy Scam Alerts warned Shiba Inu investors to avoid interacting with the BEAST’s contract to prevent further losses. Further, it advised victims of the rug pull to report the scam to relevant authorities.

The community-driven alert channel also expressed concern about the development, urging investors to remain cautious when investing in cryptocurrencies.

For context, a rug pull is a fraudulent activity that gained traction in the early days of crypto. During a rug pull, malicious actors develop and promote a token to attract investments from the unwary, and subsequently siphon the invested funds. The market has witnessed several of these incidents, and The Crypto Basic has covered a handful of them.

Last year, scammers rug-pulled 20 crypto projects in one hour, stealing $150,000 along the way. Also, a YouTuber Ice Poseidon reportedly used a similar practice to steal $500,000 from his fans. The YouTuber used part of the proceeds to acquire a Tesla automobile while his fans suffered heavy losses.

It is noteworthy that not all newly launched cryptos are legitimate. As a result, it is imperative to conduct due diligence before committing funds to any new project.

Source