The BNB chain may have experienced a drop in its network activity for some time now. Still, the consistent fraudulent activities within its network call for great concern among its users and in the crypto industry.
After a series of notorious security breaches on DeFi networks and rug pulls that happened back in December, it was seen as the last of its kind to draw such widespread concerns, but this does not seem to be so going by the latest incident.
An unfortunate project betrayed users’ hope by stealing 2,660 BNB in one of the darest moves by hackers looking to take control of the network and cause panic in the entire industry. Not one single penalty has been given against such fraudulent projects that project some credibility about their system and then turn around to defraud unsuspecting users.
According to a blockchain security service provider, PeckShield, more than 2,660 BNB tokens were deposited by the TopGoal project and washed via a coin mixing system, allowing developers to remain anonymous from users.
As reported, the dumped token was pre-minted initially, which is a signal of imminent fraud for any project undertaken. The pre-minted ticket is shared among developers after some time. But in this case, the pre-minted were not secured, indicating that the rug pull was just a matter of time before it could happen.
Current Market Value Of BNB
The aftermath of the incident resulted in the token price falling 55% in a couple of hours after PeckShield reported the rug pull. Due to this, most users drop their holdings after that, pushing the price down further. More decline in market value is expected as other users follow suit in dropping their holdings of the BNB to show their dissatisfaction with the incident.
What Users Say About The Rug Pull
Most of the users commented after the unfortunate event by saying that they had no idea what was to occur next. Before the rug pull, the Titano Finance DeFi project involved the project in an interactive session with the CEO of Binance, lending credibility to it. However, some commenters believe that there is no way to confirm whether such a meeting with the Binance CEO has taken place or not.
The project, Titano Finance DeFi protocol, has previously been accused of defrauding its users by depleting a whopping $2 million of their assets. After completing a transaction to a single address, the developers then move to a redistribution exercise by spreading the tokens to other smaller addresses, numbering 24.
The continuous rug pulls experienced in the industry call for urgent intervention by imposing strict regulation and control over blockchain projects, considering how vital they are and the level of acceptance of cryptocurrency in the mainstream finance sector.
On the part of BNB, the Binance exchange platform can do more to help put a stop to the recurring incidents like this that might happen to any token on its exchange platform.