MGAS Price Plummets After Suspected Rug Pull

MGAS Price Plummets After Suspected Rug Pull

Metaswap Gas has recently been taken off the shelf on one of the largest crypto websites CoinMarketCap amidst a swift drop in price and a suspected rug-pull.

PeckShield, a blockchain safety company, recently tweeted on a suspicious transaction of 1,100 BNB (~$603k) to an account on Tornado Cash where funds are much harder to track, because it has improved privacy measures via breaking the on-chain link between the source and destination addresses.

Right before the official announcement, PeckShieldAlert tweeted out the sudden price drop of MGAS, which amounted to almost 50%. The initial transaction happened almost a day before it was announced by PeckShield.

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What is a Rug Pull in Crypto? (Meaning + Examples)

What is a Rug Pull in Crypto? (Meaning + Examples) What is a Rug Pull in Crypto? (Meaning + Examples)

The transaction proved to be more than just suspicious since all the social media accounts linked to Metaswap Gas were taken off including on Medium, Twitter, and Instagram. Likewise, PeckShield advised users against staking with Metaswap Gas and revoking any ongoing transactions. 

Other exploited blockchain platforms, such as Grim Finance that suffered a $30M loss, informed their customers that they’ll be compensated for their losses. On the other hand, it is too early to tell whether Metaswap Gas was actually hacked, or if it was actually a premeditated rug pull from the start.

Dom Z. - Crypto Analyst

by Dom Z. - Crypto Analyst, BitDegree