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Token on BNB Chain faces rugpull – A grave pattern arises

January 15, 2024
in Altcoins
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Token on BNB Chain faces rugpull – A grave pattern arises
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  • Users holding WEWE on the BNB Chain saw a price decline due to a possible rugpull.
  • Negative sentiment and declining user activity posed challenges to BNB’s reputation.

Recently, participants within the BNB Chain [BNB] found themselves entangled in what appeared to be a rugpull. This unfortunate incident involved the WEWE token, which left users grappling with a substantial 98.82% price drop.

Here’s what transpired

On the 15th of January, AegisWeb3, a cybersecurity firm, identified a significant sell-off by multiple addresses within the BNB Chain, raising concerns among users.

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📉 Price Alert! 📉 #Slippage The price of $WEWE on the #BNBChain has experienced a drastic plummet of 98.82%.
TOKEN CONTRACT: 👇0x10412Dbac4ba7C1aFe2F019EBccE554C6bc547Df

Just 25 minutes ago, several addresses initiated a significant token sell-off, causing this sharp decline.… pic.twitter.com/sODacSqSuX

— AegisWeb3 (@AegisWeb3) January 15, 2024

This unfortunate incident could potentially cast a shadow on BNB’s reputation, impacting user trust and confidence in the network.

The abrupt decline in WEWE’s price underscored the vulnerability of certain tokens within the BNB ecosystem, prompting a reevaluation of the platform’s security measures.

Word on the street

AMBCrypto’s analysis of Santiment revealed that the Weighted Sentiment around BNB had experienced a decline, with negative comments outweighing positive ones.

This shift in sentiment may signal growing apprehension and skepticism among users, potentially affecting BNB’s adoption and overall market perception.


Source: Santiment

Moreover, the decline in overall active users within the BNB Chain, as indicated by Token Terminal’s data, suggested a potential disengagement from the platform.

See also  Ethereum Holds Multi-Year Bullish Pattern – Expert Suggests The Next Move Will Be ‘The Real Deal’

A 6.4% decrease in network growth within 24 hours raises questions about user satisfaction and interest in the aftermath of the rug pull.

The financial aspect of the rug pull is also noteworthy, as the revenue within the BNB Chain fell by 24.2% within the same period.


Source: Token Terminal


Is your portfolio green? Check out the BNB Profit Calculator


BNB Chain has a history of rugpulls

This rug pull is not an isolated incident, adding to a series of similar events on the BNB Chain. Previous rugpulls, related to the OMNI token on the 25th of December and a meme coin on the 27th of August, contributed to an unsettling pattern.

Despite these challenges, BNB’s price demonstrated resilience, growing by 3.73% to reach $312.92 at press time. The positive price action may be attributed to various factors, including the overall bullish sentiment in the crypto market.

Tags: arisesBNBChainFacesgravePatternrugpullToken

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