Exit scams in decentralized finance have been so ubiquitous that they are hard to keep up with. Furthermore, they are accompanied by assurances that this is not a part of a scam.
The latest suspected rug pulls, when a project team works to increase market cap then abruptly steps away and cashes out, leaving investors holding the bags, is DistX.
The token sunk to a market cap of $15,000 after enjoying a cap of over $1.5M yesterday. DistX billed itself as a token sale platform. DistX token holders were promised not only access to tokens launched on the platform and, if they held enough of the tokens, a 2% share from the sales.
After the launch in August, the token hit a high of $0.25 before settling into the 6-8% range in the past month.
The bottom dropped out over the weekend, with the price falling to next to nothing. The market cap, which was $1.5M last December 14, went all the way to $9.670 and now sits at $15,000.
A project founder, Adrian Daluz, announced on Sunday that after DistX’s fourth token sale was unsuccessful, they will be closing it down.
Daluz added: “If all you care about is this, know that we aren’t removing liquidity and with the remaining company funds (95k USD) we will be buying DistX from Uniswap and burning it to help you guys cash out at a higher amount.”
The reassurances were undercut by many transfers of over 192 Ether that appear to be removed that liquidity from Uniswap, an anti-scam group, WARONDRUGS, stated. The CEO of TrustSwap, Jeff Kerdeikis, said that he was working with DistX to figure out a way to salvage value for token holders:
Daluz and DistX have been unavailable as the social media accounts have been deleted. Comments on the Telegram group have been muted. DistX hasn’t responded yet.
DeFi suffered from numerous rug pulls, and exit scams as the market heats up and investors try to get in every day. It has also witnessed plenty of projects fail or fizzle out. Nevertheless, DistX holders don’t care too much about the reasons for the sudden exit. They want the token they bought to be worth nothing.
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