Ordinals became the center of attention among the crypto community in 2023. However, each new narrative also motivates scammers to create scam tokens and defraud unsuspecting investors. The Ordinal DEX (ORDEX) token dropped to zero as the team conducted a rug-pull. This collapse in altcoin price happened in less than an hour.
This altcoin team performed a rug pull: More than $70,000 lost!
On-chain detective PeckShield detected an interesting rug pull incident today. PeckShield shared that an address starting with 0xea81 exchanged one quadrillion ORDEX tokens for 30.96 Ethereum (ETH), worth approximately $70,600. Following this, the token dropped to 0 on Uniswap in less than an hour. PeckShield made the following statement to its followers on the subject:
PeckShieldAlert Ordinal Dex (ORDEX) is down 100%. Address 0xea81…9e31 exchanged 1,000,000,000,000 ORDEX for 30.96 ETH (about 70.6 thousand dollars. No: Rug pull token uses the same name as the legal ones.
Ordinal Dex (ORDEX) is traded on Uniswap, a DEX platform. The altcoin price fell to zero in a short time.
cryptokoin.comAs you have followed from before, such events are not uncommon in the crypto world. Most recently, we witnessed a similar incident with a fake GEMINI token on December 7th. PeckShield reported that bad actors converted 4.2 quadrillion GEMINI tokens into 133.97 Wrapped Ethereum (WETH). He stated that the fraudsters thus performed a rug pull.
It is necessary to be very careful in the crypto market!
Sometimes scammers use names and symbols spelled similar to those of the legitimate altcoin project. According to experts, scammers do this to attract more people into their networks. For example, a fake project of Islamic Coin (ISLM) with ticker ISLAMIC was traded on BNB Chain. Then, on October 11, scammers stole over $150,000 by draining a quadrillion ISLAMICs.
When using decentralized exchanges, investors need to cross-verify whether they are purchasing coins with the correct ticker symbols. Certain crypto data aggregation platforms provide detailed information about where a particular altcoin tokens are listed. Moreover, the probability of a rug pull is quite high for tokens with extremely low market value. It is possible for scammers to easily manipulate the prices of such tokens. Additionally, these types of tokens see higher volatility. Actors using FOMO defraud inexperienced investors and traders into their networks in this way.
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