Cult DAO Clarifies Involvement in Newly Rugpulled XIRTAM

Cult DAO, a crypto project that made headlines this week following a tweet from Elon Musk has shared an update about its involvement with XIRTAM, a crypto project that has now been suspected to have been rug-pulled. According to insights shared by independent crypto journalist, Wu Blockchain, XIRTAM recently raised 2000 ETH in funding, and was previously funded by Cult DAO.

XIRTAM rugpulled, an educational project that raised 2,000 ETH recently. The project was previously funded by CultDAO. AscendEX exchange also announced the launch of XIRTAM spot trading. Binance has frozen the funds transferred to Binance by the project. Investors need to be…

— Wu Blockchain (@WuBlockchain) May 3, 2023

Cult DAO in a new update said it is “extremely disappointed” in the way XIRTAM have conducted its affairs since it raised the funds to date. The protcol said it made a 13 ETH investment into the project as the 157th proposal raised in the DAO. At the time it backed XIRTAM, Cult Dao said the protocol appeared genuine as all questions were answered and clarifications made into its mission and plans for the future.

The protocol also said the decision to invest in XIRTAM gained a massive 84.59% yes votes (~52.6 Billion) and 15.41% no votes (~9.6 Billion).

With the turn of events, Cult DAO said XIRTAM overpromised and underdelivered with a liquidity of 24 ETH upon launch for a protocol that is valued at around $40 million. With the silence from the founding team, Cult DAO is exploring whether or not it should sell off its investment in the XIRTAM project or to hold on until the raised issues are addressed.

XIRTAM Rug and Memecoin Warnings

The digital currency ecosystem is currently experiencing a massive hype in the embrace of new, unproven and highly volatile digital currencies dubbed memecoins. With the likes of PEPE in the lead among the new ones in circulation, the interest generated thus far is rising by a mile.

Though massive gains are possible if one gets in early, most traders who bought in at the top are recording massive losses now that major price correction is setting in. The attractiveness of memecoins is still being embodied in the duo of Dogecoin (DOGE) and Shiba Inu (SHIB), both of which have stood the test of time.

While it is not looking like the memecoin hype is going to settle down anytime soon, experts are notably advocating caution across the board.