Bad news everyone!
Today we had another rug pull on SmartBCH - and this time it was a rug pull from one of the bigger projects:
The creator of MonkeyCash rug pulled, deleted their Telegram account and disappeared.
Here is the message which was written by one of the moderators of the group:
You can double check and see the message yourself here.
And here is the proof that the owner of the Telegram group deleted their Telegram account.
Unfortunately, rug pulls happen quite often - especially when the token is very new and abuses the name of a legitimate project which hasn't made it to SmartBCH yet.
I wrote about it here on noise.cash before and here in more detail on read.cash. As you can see in my article, even I myself fell victim to a rug pull - and I lost 0.02 BCH.
What is a rug pull?
A rug pull is when the liquidity is removed. That means that the token holders won't be able to sell their tokens.
In my previous article I gave a more detailed description:
The token creator removed all the liquidity after they took in enough BCH. I doubt that the liquidity will ever be added again.
This is what is called a "rug pull": I am left with worthless tokens which I will never be able to sell, because nobody wants to buy them. Therefore, there is no liquidity - and I was scammed out of my initial investment.
Lesson learned.
Is MonkeyCash dead now?
You may be surprised to hear that even though the creator of the token pulled their liquidity and disappeared, the token may not be dead after all. We will have to see if MonkeyCash survives this rug pull. The tokens will remain in existence and can theoretically still be traded and even appreciate in value - if the community decides to provide liquidity for the token - and if people start buying them again despite the shady and borderline criminal behaviour of the creator.
The price of the token is definitely very low right now. So it may even be a good buying opportunity. However, this is definitely not financial advice - and I haven't bought that token and don't plan to buy it either.
What will you do?
Will you buy the token and gamble hoping for a price recovery? Or do you think the token is dead?
Personally, I concentrate on buying projects where I either know the creators - and where the creators have a good reputation in the Bitcoin Cash community - like KTH and ARG - or where the token is a public good like MAZE.
CATS and KITTEN are probably fine, too. The developers are anonymous, but have shown in the past that they are reliable and they seem to act in the best interest of the token holders.
Thank you for reading and remember to be careful when buying SEP20 tokens! SmartBCH is a great project - and it attracts a lot of attention to Bitcoin Cash - which is both a good and a bad thing. The good thing is that Bitcoin Cash finally gets the attention it deserves - and this may finally be the chance to become the world's preferred currency. On the other hand, lots of scammers are attracted to SmartBCH, too. In my humble opinion that's why we are seeing so many rug pulls right now.
Let me remind you:
In the Bitcoin Cash community it sometimes feels like we are all a big family. However, anyone can create an SEP20 token on SmartBCH. It doesn't take much time or money to do that. So please be aware of that. And don't buy new coins just because the chart looks like they are going up in price. And be especially careful with names that sound familiar. I fell for all of this, unfortunately. It was the first time - and I surely hope it will be the last time.
So, be more careful than this guy when it comes to investing. 😉
You were not scammed, you were just stupid to trust into your illusions. Take responsibility, that is what you can learn from someone who makes use of his rights to liquidate whenever they want. There is a huge difference between what people say and what people do. Observe the actions of others to verify their integrity. Never trust, always verify.