After ‘Rug Pull’ Warnings, Coinbase Removes Cryptocurrency Links

Coinbase Global has withdrawn ‘how to buy’ directions for at least three crypto tokens that have been issued ‘rug pull’ warnings which claim that investors may lose money. The company added that it aims to tighten safety.

According to Jaclyn Sales, a Coinbase spokesman, the hyperlinks were deleted from the cryptocurrency exchange’s website after Reuters brought them to their attention this week. She also stated that safeguards on its auto-created web pages would be improved.

Coinbase, a Nasdaq-listed company, has pages that offer advice on investing in tokens, and the pages in question were informational rather than making them available for trading on its app or wallet.

Sales claimed that the pages, which included a disclaimer that the information was not investment advice and that the exchange was not responsible for “errors and delays,” were generated automatically using data from the data website CoinMarketCap.

CoinMarketCap stated that it was unaware of the Coinbase pages, and its vice-president of growth and operations, Shaun Heng, stated that there was no collaboration with Coinbase.

Sales stated that it was unclear whether Coinbase performed checks on the coins whose information pages were erased. Coinbase said in an email to the media that it will “develop a more robust disclaimer for the pages that are being auto-created.”

Coinbase would also “build a process to take down any other pages which CoinMarketCap has flagged as potentially being scams,” it said, and added that “assets which relate to known scams were not tradeable on the exchange”.

Coinbase removed one page that advertised DeFi100 and sent users to CoinMarketCap to find out where they could purchase it.

The DeFi100 website on CoinMarketCap, on the other hand, warns: “We have received numerous reports that this project was a hoax. Please proceed with caution.”

According to CoinMarketCap, which does not trade cryptocurrencies, DeFi100’s coins have not had any daily trading volumes since November 14.

DeFi100’s website and Medium blog are now unavailable. Its most recent tweet came in May of last year.

CoinMarketCap did not react to inquiries about DeFi100 or its warning.

In May, Twitter users claimed that DeFi100 had engaged in a “rug pull,” in which investors deposit money in bogus projects before the coin’s producers steal the money.

On May 23, DeFi100 refuted the charges in one of its last tweets. Recognizing that investors had suffered losses, it stated that it aimed to “put the project back on its feet.”

Coinbase also removed a page touting Mercenary, a coin that, like DeFi100, was not available on Coinbase’s app or wallet.

Mercenary debuted in January, reaching a high of over $20. However, it plunged from just over $8 to a fraction of a cent in minutes on Jan. 26 and has not recovered since, according to CoinMarketCap data.

PeckShield, a blockchain security organization, tweeted on Jan. 26 that Mercenary had been attacked by a rug pull and advised buyers to avoid it.

It is unknown when Coinbase launched its page on Mercenary, which according to archival webpages initially featured CoinMarketCap on January 15. CoinMarketCap did not react when asked if it has removed Mercenary from its system.

Coinbase has also removed a page for a coin called Squid Game, which collapsed to nearly zero in November in what cyber security experts called another rug pull. It was also not available through Coinbase’s app or wallet. more info

The SQUID token’s website and Medium account were soon taken offline once the project failed and remain so to this day. Twitter also suspended the project’s account, citing a violation of the network’s policies.

(Adapted from NDTV.com)



Categories: Economy & Finance, Entrepreneurship, Regulations & Legal, Strategy, Sustainability, Uncategorized

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