Developer’s $2 Million Rug Pull Triggers Apology, Revealing Gambling Addiction and Project’s Demise
A developer’s departure from the Encryption AI project took a devastating turn when he executed a rug pull during a liquidity migration event, resulting in the project’s valuation plummeting from $2 million to a mere $20,000 within minutes. This incident, documented through a Reddit post, shocked investors who had placed their trust in the project and its associated token, 0XENCRYPT, which experienced a significant drop from $2.05 to a dismal all-time low of $0.02. CoinGecko, a token data aggregator, recorded the drastic price decline around July 2.
In a departure from typical rug pulls, the developer left behind a farewell note addressed to the project’s community, offering apologies for his actions and attributing them to his struggles with a debilitating gambling addiction. After leaving the note, the developer vanished, erasing all traces of the project from social media platforms.
Investors shared screenshots of the developer’s message, where he candidly disclosed his gambling woes, revealing losses of $300,000 in online casinos. While he expressed uncertainty about making reparations or relaunching the project, he pledged to exert every effort to better himself as an individual.
This incident serves as a stark reminder of the risks associated with the cryptocurrency landscape, underscoring the importance of due diligence and caution when investing in projects led by anonymous or unverified individuals.
Outrage and Disbelief Sweep Community as Developer’s Rug Pull Unfolds
The community’s response to the developer’s rug pull was characterized by a wave of anger and disbelief. Many expressed their outrage, with some even expressing wishes of karma befalling the developer. The incident was described as the worst birthday present and a bizarre conclusion to a rug pull, leaving community members shocked and disillusioned. The abrupt and unexpected nature of the event added to the overall sense of disappointment and frustration among those affected.
Trader Crypto Daddi expressed his disappointment as the rug pull incident coincided with his birthday, leaving him with losses of approximately $30,000. Having placed trust in the developers and invested in the project, he was among the victims impacted by the deceitful act. On social media platform Reddit, a community member remarked on the unusual nature of the developer’s actions, considering that rug pulls typically involve developers vanishing without any explanation. The lengthy note left by the developer was described as a “weird way to rug” by the Reddit user.
In a separate development, Jimmy Su, the chief security officer of Binance, recently discussed the activities of malicious actors operating on the darknet. Su highlighted the existence of a well-established ecosystem comprising intelligence gatherers, data refiners, hackers, and money launderers, all working in concert to steal from crypto users. This underscores the ongoing threat posed by hackers within the cryptocurrency space.