Baby Musk Coin (BABYMUSK) is the latest cryptocurrency project to pull the rug on investors, as millions of dollars are carted away by its developers.
The token, which launched in late January, saw the Baby Musk Coin team raise $2 million in an Initial Coin Offering (ICO).
Several crypto traders who missed out on the gains of other memecoin projects like Dogecoin (DOGE), Shiba Inu (SHIB), Baby Doge, etc., purchased several amounts of BABYMUSK, with the hope of recording major profit when its price soars like the others.
However, their hopes were cut short after Baby Musk Coin’s founders exploited a bug in the project, stealing its liquidity and leaving the project for dead.
The unfortunate incident saw the price of BABYMUSK crashed nearly 100% at the time of writing.
An Obvious Scam Since Inception
Like several other crypto projects that have suffered similar fates, investors were warned beforehand not to invest their funds in the token because of the numerous red flags spotted.
A Twitter user named @NOSHITCoin_io took to the popular microblogging platform to inform the crypto community that people were prevented from selling the token.
Typically, the team behind Baby Musk said the sale feature was disabled in a bid to prevent early traders from dumping their accumulated tokens on new traders, which could result in a price crash.
@NOSHITCoin_io also informed prospective Baby Musk investors that the token’s developers hold a large amount of the cryptocurrency.
Unfortunately, several traders ignored the warnings as they continued to throw money into the project.
As at yesterday, Baby Musk recorded a 30% gain following widespread adoption. At press time, the token’s price did not only crash nearly 100%, it also deleted every form of its existence, including its website and Twitter handle.
Rise in Crypto Rug Pulls
The crypto industry has had its fair share of scams, with billions of dollars siphoned from investors in different forms of fraud.
One of the most popular crypto scams is rug pulls, a fraudulent effort by a cryptocurrency developer to steal liquidity from its pool.
Last week, a Youtube streamer was reported to have pulled the rug on his fans, after stealing $500,000 from them and using the illicit gain to buy himself a Tesla.
Similarly, developers of a cryptocurrency that is based on the popular Netflix series Squid Game, also pulled the rug on investors to the tune of over $2 million in November 2021.
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