The price of BNB Chain-based Teddy Doge (TEDDY) fell over 99.9% in 24 hours on Monday in Asia as over US$4.5 million of the token was sold over the weekend, in what some analysts described as a “soft rug pull.” The token was trading at just a fraction of a dollar on Tuesday in Asia.
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Fast facts
- Security firm PeckShield said wallets connected to project developers exchanged TEDDY for wrapped BNB (wBNB) — BNB modified to be able to run on Ethereum — from several accounts over the weekend, which were then exchanged for 10,000 BNB and 2 million BUSD, PeckShield added.
- Project developers DRAC_Network rejected this assessment, however, tweeting late Tuesday afternoon: “We should thank the guy who stole the money because he left behind the heat and community cohesion. This is something money can’t buy. We never gave up on the project and our DRAC chain.”
- DRAC_Network tweeted on Monday they had closed the cross-chain bridge after announcing on the firm’s Telegram channel they were “not certain whether it is a bug in our cross-chain bridge or a leaked developer wallet.”
- A rug pull is when project developers drain liquidity pools before abandoning a project, making off with profits while leaving investors holding tokens of greatly reduced value.
- PeckShield and others characterized this as a soft rug pull as the developers had not appeared to have abandoned the project.
- Developers added they were working to replace holders’ TEDDY with a new token named DRAC, as the project is rebranding itself to DRAC Network.
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