The developers of a Polygon-based yield aggregator Blur Finance allegedly disappeared with $600,000 worth of funds from its Polygon and BNB chain contracts.
To shed more light, security firm PeckShield tweeted on Aug. 10 that the stolen amount of the trailed log was withdrawn within minutes and its social media channel deleted. In addition, its native token BLR has lost almost all of its value.
The link to the protocol’s Discord channel displayed an “invalid invitation” message and its website returned an invalid certificate.
According to online investigators, Blur Finance started on BNB Chain and had over 754 holders. An integration deal was struck between Blur and Polygon on July 7, forecasting annual returns of around 4,000%.
Last week, the price of the BLR token hit its all-time high at 6 cents. After the carpet move, it has plunged 99% and is changing hands at $0.00064 at press time.
The move is a classic example of a scam run by developers who start decentralized finance first [DeFi] Applications and use social media marketing tools to attract people before a token is issued and listed on a decentralized exchange [DEX].
After investors buy the tokens in hopes of a positive return, the developers shut up shop and disappear.
Another polygon based web3 gaming app Rug Pulled
A few days ago Dragoma, a newly launched decentralized game project on Polygon, was too abandoned. PeckShield reported an alleged rug pull of over $1 million by Dragoma developers. The Polygon contract was reportedly missing 420,000 USDT and 880,000 MATIC tokens.
As TronWeekly reported, the Teddy Doge developers made off with $4.5 million on July 25th. According to the report, 30 billion TEDDY tokens were exchanged for BNB and BUSD and then withdrawn via the Binance exchange.
In soft rug pull scams, developers perform legitimate work on a blockchain and then drain the liquidity pools from the project, essentially depriving investors of the bottom and causing a sharp drop in associated tokens.
In both cases, the project developers would aggressively market their product and promise high returns. Investors who fall for it suffer unexpected losses.
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