Experts combine the drop in MGAS prices with a “rug pull”

The blockchain security company, PeckShield alerted investors to a potential rug pull after seeing a massive 46.99% drop in the price of MetaSwap’s MGAS token. The MetaSwap protocol enables the exchange of non-fungible tokens (NFTs) on the Ethereum, Binance and Polygon blockchains.

After the unexpected drop in prices, all official accounts linked to Metaswap Gas (including those of Twitter, Instagram and Medium) have been removed, backing up PeckShield’s claim that it was a slap on the wrist.

According to PeckShield, 1,100 BNB tokens valued at nearly $ 602,000 have been transferred to a Tornado Cash account, a non-custody Ethereum-based solution that is used to break the link in the chain between sender and receiver. This process makes it harder to track down stolen funds.

MetaSwap transfer details. Source: PeckShield.
Experts combine the drop in MGAS prices with a “rug pull”
Experts combine the drop in MGAS prices with a “rug pull”

PeckShield advises investors to discontinue the stakes of Metaswap Gas and to withdraw existing contracts to avoid further financial losses.

In December alone, several cryptocurrency projects fell victim to a number of exploits, resulting in a cumulative loss of more than $ 600 million. On December 21, Bent Finance proactively urged investors to withdraw their funds after confirming an exploit in one of their pools.

Like other victims of the cryptocurrency community, such as Grim Finance, BitMart Yes AscendEX, Bent Finance has promised its investors to return any stolen funds. However, the team has not yet announced a plan for this:

“We recommend withdrawing the protocol monies until further notice. We are not going anywhere and will recover from it one way or another.”

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