Cryptocurrency scams leading to rug pulls have been a top concern for investors and enthusiasts for quite some time. Recently, Binance has frozen the funds of XIRTAM, an educational project after it pulled a rug, raising 2,000 ETH, equal to $3.5 million. Binance security team has been doing a great job in bringing justice and investigate crypto culprits associated with rugs pull and scams.

The CultDAO token’s price dropped by more than 30% after the funds were moved from inside the token presale to Binance. This is not an isolated incident, as Merlin DEX and Ordinals Finance have also been affected leading to losses amounting to $2 million and 269 million OFI tokens respectively.

To prevent further scams and rug pulls, industry experts recommend taking timely precautions when making investments. The initial checks involve studying the team behind the project and analyzing their backgrounds, verifying the code repository and assessing the implementation of the smart contract, and evaluating white paper, detailing the investment guidelines and the roadmap. It's also important to ensure the token you are buying is verified, following all rules and regulations of the local jurisdiction.

In addition, relying on third-party security services and auditors such as CertiK helps. They offer bug bounty, software audits, and secure code review services. A Verified Smart Contract, backed by the code audit, is essential before investing in a token or airdrop.

Ultimately, as a user, one needs to exercise caution in order to protect investments against scams and rug pulls. Although rug pulls may not be avoided entirely, taking precautionary steps will help minimize the risk.



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