Polydragon Rugged and Wronged Its Users – Here’s What We Know

A rug pull from early October abused partnerships with several protocols, including that of this publication.

A Prescient Prescence

The Twitter last Twitter post was October 1st. The Telegram went silent for some weeks and had a few sparse messages. Ultimately, it appears the project rugged their community of nearly $60 Million on Oct. 8th. The protocol ghosted its users.

Early last month, BSC News hosted the protocol Polydragon for a Telegram AMA. The project went through our regular KYC and went through the AMA with almost no problem. We felt the need to let our readers know what we know, and hopefully, we all learn.‍

Fantom Ape Talks said it best on Twitter: “Assholes rugged sadly. Three chains altogether!”

In early October, Polydragon reportedly had over $60 Million in USD of total locked volume on the protocol. The project could have been suspicious with its high annual percentage yields, a tactic potentially used to attract larger investors. The tactic is an easy lure for developers looking to pull the rug out on a large sum of liquidity.

The Token Effects

The native token $DGOLD for Polydragon fell twice dramatically upon launch on Oct. 6th and 8th. The price launched at about $0.34 USD according to CoinMarketCap and had since lived below $0.001 since the rug pull. The project was not live long enough for Market Capitalization figures to be tracked.

The accompanying FIRE token also tanked in price and failed to show any sign of life. 

Many users rightfully bemoaned the sudden absence of the protocol on Twitter. Rugs and exploits like these are all too common for crypto users on Binance Smart Chain and provide another learning opportunity for users. 

Not Only Users Affected

PearZap is a cross-chain platform that had partnered with Polydragon who felt the need to address the project abandonment on Twitter. According to a tweet from PearZap, Polydragon’s team quit the project around Oct. 8th. 

“PearZap just got word of the Polydragon Project quiting [sic]. Hereby we take distance from Polydragon and all their actions. we will no longer be seen as partners,” the protocol wrote on Twitter.

BSC News reached out to PearZap for comment, but they chose to distance themselves from the incident.  

The project was also given a full audit by the group RugBusters, for which they passed. A second audit by Paladin was also passed.

A key disclaimer in the RugBusters audit notes that even RugBusters did not potentially vet the project well enough: 

“We were not provided any information on the team members identities or professional background.”

The exploit is a keen reminder to everyone in the industry that real people are often untenable motives behind these screens. These incidents do nothing but propagate evidence for the industry as volatile and give credence to the fears of the reign over veteran users, not just newbies.All projects, even with audits, deserve scrutiny.

We at BSC News know well to watch out for the common indicators for scams, phishing sites and do our best to research and vet projects. We will continue to strive to bring the best projects with thorough security and vetting.

Source : bsc.news