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Cryptocurrency rug pull: Candy token plummets 87% after $2.9M loss

TL;DR

  • Candy token crashed 87% after a $2.9 million rug pull from Lena Network.
  • Over $200 million was lost to crypto hacks and rug pulls in 2024.
  • Investors are urged to stay cautious amidst growing concerns in the crypto space.

In a jolting blow to investors, the cryptocurrency market witnessed a significant downturn as the recently launched Candy token plummeted by a staggering 87%. The sudden drop followed a rug pull that drained 753 Ether, equivalent to $2.9 million at publication, from the liquidity protocol Lena Network. This incident has once again raised concerns about the vulnerability of decentralized finance platforms to fraudulent activities.

Candy Token’s drastic fall

Within hours of its launch, the Candy token experienced a sharp decline in value, dropping from a daily high of $3.08 to a mere $0.38. Data from Dexscreener revealed the stark plunge, highlighting the severity of the situation. 

The rug pull, which occurred on March 6, involved the transfer of 753.11 Ether to an address associated with the OKX exchange, as confirmed by on-chain data from Etherscan.

The rug pull unfolded shortly before Lena Network officially announced the renouncement of ownership of the token contract. Despite this, the protocol has remained silent on the incident, leaving investors uncertain. 

The lack of response from Lena Network has only amplified concerns within the crypto community about the security and reliability of such projects.

Growing concerns in the crypto space

Rug pulls and hacks continue to pose a significant threat to the cryptocurrency ecosystem, with over $200 million worth of digital assets lost to such incidents in 2024 alone. 

This alarming trend, highlighted in a recent report by blockchain security firm Immunefi, underscores the industry’s urgent need for enhanced security measures. 

The $200 million loss year-to-date represents a worrying 15.4% increase compared to the same period in the previous year.

Decrease in crypto theft incidents

While the total loss due to crypto hacks and scams has surged, incidents have decreased notably. February 2024 saw a 50% reduction in crypto theft compared to January, with over $67 million of digital assets stolen across 12 specific incidents. This decline, however, does little to assuage concerns, as the overall loss remains substantial.

The prevalence of rug pulls, and hacks poses a significant challenge to the mainstream adoption of cryptocurrencies and decentralized finance platforms. Investors are increasingly wary of putting their funds into projects that may succumb to such vulnerabilities. As the industry evolves, stakeholders must prioritize security measures and regulatory frameworks to safeguard against fraudulent activities.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.

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Ibrahim Abdulaziz

A fervent advocate, Ibrahim shares his wealth of knowledge on crypto and blockchain technology in an engaging and informative style. He frequents places where influencers gather for his next scoop. His vision is that the decentralized nature, security features, and potential for financial inclusion will drive widespread massive crypto adoption.

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