- Ruggeds on the BNB network are starting to rise, with one address creating multiple fake tokens.
- However, sentiment around the protocol remained high and its social volume grew.
Binance [BNB] has witnessed enormous uncertainty over the past year, despite the progress made on the protocol and forging new partnerships. One of those deterrents is the increasing number of rug pulls on the BNB Smart Chain [BSC].
Back pulls abound
According to a tweet from AegisWeb3 on November 6, a scammer created deceptive tokens and ran a scam on the Binance Smart Chain. They moved the initial funds to new addresses before creating these tokens, and sent any additional funds to a third address.
A scammer performs over 40 RugPulls in 11 days
AegisWeb3 has discovered a scammer who specializes in creating scam tokens #BSC and execute #CarpetPulls.
Scammers’ addresses:
0x09399eCe3B8FB81B7d38D7CaCb3b134141739cdA
0x588B601F4050d56A1D6FCf633828A3c5e33B9286 pic.twitter.com/7zjID2I8A2— AegisWeb3 (@AegisWeb3) November 6, 2023
The scammer performed more than 40 back pulls in just eleven days.
For context, a rugpull is a crypto fraud where creators dishonestly take investors’ money, rendering tokens worthless. In this scenario, the scammer’s actions could erode trust in the BSC network. People may become hesitant to invest in BSC projects for fear that it could be a scam.
Furthermore, these scams can cause financial losses for investors who fall for them. These types of activities could also attract the attention of regulators, which could lead to stricter regulations and oversight in the crypto space, potentially hindering innovation.
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Sentiment remains high
Regardless of the challenges faced by the network, BNB’s weighted sentiment and social volume had witnessed a spike at the time of writing. This implied that the network was still gaining popularity.
The price of the BNB token remained unaffected and also continued to rise. At the time of writing, it was trading at $252.30.
Source: Santiment