Coinbase Axes Links to Three “Rug Pull” Labelled Coins

In a report by Reuters, it has been revealed that one of the biggest cryptocurrency exchanges in the world Coinbase has removed the purchase instructions for three coins that had been deemed dangerous after multiple rug pulls’ warnings.

A Rug Pull?

In the crypto space, rug pulling has been one of the most common and unfortunately successful methods of scamming investors.

A rug pull occurs when the development team behind a certain project, manipulates the investors by hyping the token’s value. And then abandoning it by extracting the investors’ money, leaving the token a dead value.

In such situations, investors end up losing up to millions of dollars as tokens value drops from thousands of dollars in many cases to absolute zero.

On the announcement of the removal of these coins, Coinbase spokesperson Jaclyn Sales stated:

“The links were removed from the cryptocurrency exchange’s website after they were brought to its attention this week by Reuters. There would also be an upgrade in safeguards on its auto-created webpages.”

Adding to the same, she iterated:

“The pages, which contained a disclaimer that the information was not investment advice and that the exchange was not liable for “errors and delays”, were created automatically from information carried by data website CoinMarketCap.”

In order to avoid a similar instance in the future Sales said that Coinbase would soon develop a process that would take down any and every page that CoinMarketCap flags as potential scams.

Which 3 Coins Though?

The three coins whose links were removed include the Squid Game-inspired token SQUID which famously rose to a value of more than $2,800.

Eventually, the team that developed the coin exhausted the liquidity pool by exchanging all the tokens for money and ended up rug pulling the project for over $3.38 million. 

One another page removed was of the DeFi100 token whose website and communication channels went offline a while ago. Although the last tweet from the project states that the project will soon be back on its feet, investors declared it to be a rug pull last May.

The third page that was removed was the Mercenary token. As per investors, the Mercenary team performed a rug pull similar to DeFi100 when the token’s value plunged from $8 to almost nothing within minutes. The communication channels and website for the project have been offline as well.

Thus it is important for investors to necessarily DYOR (Do Your Own Research) as well before investing in trending coins to see if there is any legitimate developmental value in the project or not.