While the team was performing a lug pull, the Ordinal DEX (ORDEX) token dropped to zero in less than an hour.
Ordinal numbers have been the center of attention in the cryptocurrency community in 2023. But every new story also motivates scammers to create fraudulent tokens and fool unwitting investors.
ORDEX Rug Pull: Over $70,000 lost.
According to PeckShield, addresses starting with 0xea81 exchanged 1 trillion ORDEX tokens for 30.96 Ethereum (ETH), worth about $70,600. So on Uniswap the tokens dropped to zero in less than an hour. PeckShield told viewers:
“The #rugpull token shares the same name as the legal token.”
Read more: What is Rug Pull? Guide to Web3 Scams
Previously, a similar incident occurred with fake GEMINI tokens on December 7th. PeckShield mentioned Malicious actors converted 4.2 trillion GEMINI tokens into 133.97 Wrapped Ethereum (WETH) and conducted a lug pull.
Sometimes scammers use similar spellings to legitimate projects.
For example, a fraudulent project of Islamic Coin (ISLM) with the ticker ISLAMIC was being traded on the BNB chain. Then on October 11th, the fraudsters stole more than $150,000 by dumping ISLAMIC’s trillion dollar.
While using a decentralized exchange, traders must cross-verify that they are trading coins with the correct ticker symbol. Additionally, certain crypto data collection tools can provide detailed information about where specific crypto tokens are listed.
Moreover, tokens with extremely low market caps are more likely to pull the rug. The prices of these tokens can be easily manipulated and are more volatile.
Read more: 15 most common cryptocurrency scams to watch out for
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