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A stunning blow hit the cryptocurrency community as Magnate Finance on the BASE platform fell victim to a $6.4 million rug pull. The magnitude of the scam is heightened by the deployer’s involvement in previous rug pulls, which include Solfire’s $4.8 million rug in January 2022 and Kokomo Finance’s $5.5 million rug in March 2023.
Almost $17 Million Exploited From Multiple Rug Pulls
This recent event propels the scammers’ total ill-gotten gains to a staggering $16.7 million. The developer’s tactics involved tampering with the price oracle provider and purging all associated assets, leaving a trail of dismayed investors in their wake, Blockchain security firm PeckSheild reported.
Cryptocurrency enthusiast ZachXBT drew connections between the project’s deployer and the notorious Solfire exit scam. His timely warning, issued hours before official confirmation, gave a fleeting chance for investors to brace themselves. Within an hour of the alert, Magnate Finance’s website vanished, and its Telegram group was deleted. This abrupt disappearance translated into a staggering $6.5 million loss, ascribed to the deployer’s manipulation of the price oracle.
News of the rug pull reverberated through the market, causing a sharp more than 90% decline in the value of the protocol’s native token, MAG. Its price is now trading at $0.0008184, at the time of writing. As the cryptocurrency landscape navigates both innovation and threats, the Magnate Finance incident serves as a stark reminder of the ongoing challenges and vulnerabilities inherent in the realm of decentralized finance.
Also Read: Rug Pull Alert: Pepe Coin Price Dumps Over 20% Amidst Large Exchange Inflows
Rising Rug Pulls On Coinbase Layer 2 Base
Despite its mainnet release on August 9th, the Coinbase Layer 2 Base blockchain has experienced a series of rug pulls and exit scams originating from the projects hosted on its platform. Given the situation that we are seeing and according to a blog post by cryptocurrency transaction surveillance service Solidus Labs, Base may be in for further difficulty. More than 500 fraudulent tokens were discovered by the corporation on Base, it said. Among them were 300 tokens with secret abilities to create an endless supply of tokens. Additionally, 60 prevented customers from reselling their tokens, and 70 charged unforeseen transaction fees.
Also Read: Binance’s Acquisition Deal With Gopax Reportedly Failed
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