As is well known that the crypto market has offered a wide range of opportunities. Despite all that, there are those who will try to take advantage of the excitement of the people. On that basis, from day to day, there is only news about fraud in the crypto market.
Most recently, an identity that used the name Elon Musk as a ride to lure people to invest in their “BabyMuskCoin” token was reported to have been “Rug Pulls”. A total of $ 600,000 was successfully defrauded from investors.
BabyMuskCoin Rug Pulls $ 660K in BNB: Experts Advise How to Avoid Getting Scammed
Often the form of fraud used is the ‘honeypot’ technique. This fraud technique will trap investors into buying tokens and at the same time cripple their ability to resell them. In other words, investors ’investments are stuck in the contract because all withdrawals are deactivated. Usually, scammers or scammer will blacklist all other wallets except their own wallets.
In addition, the scammer uses the name of Tesla's CEO - BabyMuskCoin, whose agenda is to "catch Elon's attention so he can join the project" and make people more interested.
The price of the token had suffered a loss of 99% in just hours after the token development team transferred 1,571 BNB (worth about $ 660,000) to Tornado Cash.
CertiK reported that the token developer had made two transactions for 10 BNB each to Tornado Cash on 31 January. Then, they started exchanging BabyMUSK tokens with BNB before the price dropped to zero.
In January alone, CertiK found that $ 16.56 million had been lost due to 9 ‘Rug Pull’ incidents. On that basis, experts advise investors to read the audit report first before making a report.
