An artificial intelligence coin called Encryption AI has experienced a rug-pull. The developer stole around $2 million and users are unlikely to receive compensation. Here are the details…
Rug-pull alarm issued for artificial intelligence coin
Crypto project Encryption AI (0XENCRYPT) crashed 99 percent as the developer behind it performed a rug-pull operation. The total amount lost is around $2 million. Also, the developer posted a message referring to his online gambling addiction. Rug-pull is one of the notorious scams plaguing the crypto market, as we’ve reported on cryptokoin.com. Various reports have surfaced on social media regarding Rug-pull. Among them is a message from the developer himself stating that he has “fallen into a serious addiction to online gambling and casinos”.
The developer said it has lost about $300,000 in the past two months. He added that he cannot guarantee whether he will be able to compensate for this situation and when he will restart the project. There is very little information about the developer. The project claimed to offer a safe and efficient way to launch new tokens with different bots that help users find and evaluate token launches. The price of the 0XENCRYPT token dropped from $2.06 to $0.02. Recovery of the token or restart of the project seems unlikely. The events are adding to the growing list of projects that use artificial intelligence as a tool to attract investors.
TOOLS Token also experienced rug-pull
The rug-pull of Encryption AI happened alongside that of TOOLS. TOOLS is a BSC based DeFi dashboard that claims to empower trading experiences in BSC. The developers have not been authenticated, which is usually a pretty solid sign of risk. The token is currently priced at $0.00006, up from $0.006 at the beginning of July. As with Encryption AI, not much information is available so far, but the crypto community is in a rage about another rug-pull.
With numerous incidents occurring this year, rug-pull and hacking incidents rocked the crypto market in 2023. Although it is a tough start for the market, various measures are being taken in general. This led to a slowdown in bad actors in 2023. Morgan DF Fintoch has made one of the biggest hits this year, stealing $32 million. Claimed to be backed by Morgan Stanley. More recently, Chibi finance users lost over $1 million after the developers’ rug-pull. Such events led the US Commodity Futures Trading Commission (CFTC) to warn users about hacking.
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