According to data from Coinbase, TeddyDoge (TEDDY) price has dropped by over 99.94% in the previous days.
The project is a “soft rug pull,” a cryptocurrency scam in which a team promotes a particular project and inflates its price before stealing investors’ money, claims blockchain security company PeckShield. Another name for this is an exit scam.
Different kinds of rug pulls exist. Developers may easily discard the token and force their victims to pick up the tab. Teddy Doge was the victim of what is referred to as a “soft” rug pull.
The deployer of the contract, based on the company, boosted and dumped the price of the crypto. Decentralized finance allows for the option for bad actors to “liquidity steal,” or take money away from a specific project.
Smart contracts also allow developers to cover up malicious backdoors. These rug pulls are categorized as “hard.” Those responsible for the rug pull were able to escape with 10,000 BNB tokens worth $2,591,573 and Binance USD (BUSD) stablecoins worth $2 million. Presently, the assets are being moved to the Binance exchange.
There are plenty of scammers that have attempted to make money from the popularity of Dogecoin. According to U.Today, DogeMother, one of the several meme currency imitations, turned out to be a honeypot fraud.