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Monday, November 28, 2022

Coinbase Discards Cryptocurrency Links After ‘Rug Pull’ Threats

Coinbase Global has eliminated ‘how to buy’ directions for almost three crypto tokens due to ‘rug pull’ threats that can lead to investors losing their investment, reported on Thursday, February 10, 2022. The purpose is to enhance security measures.

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Coinbse Global Inc is an American company operating as a crypto exchange platform established by Brian Armstrong & Fred Ehrsam on June 20, 2012, and does not have any physical headquarter. 

Jaclyn Sales, a representative for Coinbase Global, elaborated the situation and briefed that the links were eliminated from the cryptocurrency exchange’s website when Reuters highlighted risks this week. She said their team is also upgrading safety measures, particularly auto-created web pages.

The Nasdaq-listed company offers informative pages on investing in tokens, and these were not available to trade within its app or wallet; instead, they provide tips about the market with informational content rather than anything actively involved in trading careers like buying coins (or “tokens”) directly from an address at this time.

CoinMarketCap Team Response

A salesperson said that their website automatically generates pages from CoinMarketCap data with a disclaimer saying the data has errors but can help people decide to invest in virtual currencies like Bitcoin or Ethereum.

Bitcoin price is down 2.3% today after a decent recovery in last seven days. | Source: BTC/USD on Tradingview.com

CoinMarketCap did not show any awareness about the Coinbase pages. According to its growth and operational vice-president, Shaun Heng, they never entered into any partnership with Coinbase about the particular pages.

Sales did not clarify whether Coinbase observes the price fluctuations in the coins whose informations were available on the discarded pages. But Coinbase would “build a more robust disclaimer for the pages which are being auto-created,” the Coinbase authorities informed Reuters on Thursday through an email.

Coinbase planned to “build a process to take down any other pages which CoinMarketCap has flagged as being scams,” Sales told, also briefed that “assets which relate to known scams were not tradeable on the exchange.”

DeFi100 Removal From Coinbase

One of the discarded pages by Coinbase featured DeFi100 and educated individuals to examine CoinMarketCap to explore the place where it could be bought.

But the DeFi100 page on CoinMarketCap warns: “We have acquired several reports that this mission has exited as a fraud. Please be careful.”

CoinMarketCap, which does not offer cryptocurrencies trading on its site, says DeFi100’s tokens have not shown trading activity since Nov 14.

DeFi100’s website https://defi100.org and Medium weblog web page https://wrapp3d.medium.com are offline. The last tweet appeared in May last year.

CoinMarketCap did not answer the requests for remarks on DeFi100 or its caution.

Twitter customers claimed in May 2021 that DeFi100 had carried out a “rug pull,” the place stockholders deposit funds in phony ventures earlier than a coin’s designers make off with the funds.

DeFi100 opposed the statements in the latest tweets on May 23. However, it was confusing that traders bear losses hoped to “bring the project back on its feet.”

The company did not respond to Reuter’s requests for comment, and it is unknown if they will reply or provide a response.

Mercenary Removal From Coinbase

Coinbase has now banned the featuring page of yet another new cryptocurrency. This time it’s called “Mercenary,” and like DeFi100 before him—and countless others that aren’t available on Coinbase’s app or wallet.

Mercenary was initiated in January and had ever highest price level of almost $20.

As per CoinMarketCap information, Mercenary dropped from $8 to a fraction within minutes on January 26, and since then, its price did not retrieve.

PeckShield, a Blockchain security firm, tweeted on Jan 26 that rug pulled strikeout Mercenary and advised buyers to be away from it.

Reuters could not communicate with Mercenary because its website and Twitter page were offline.

Coinbase’s page on Mercenary was first featured by CoinMarketCap back in January. However, when pressed for information about whether or not they took it off their system following this discovery – which would be indicated if any removal was happening at all-the company refused to comment.

Coinbase also took down a page on a token with the name of Squid Game, and this token stroke to almost zero in November. As per cyber security experts we reached out on the matter, that was also a rug pull. The coin also was no longer present on Coinbase’s app or wallet.

When the project unraveled, it caused an internet frenzy. As a result, Twitter suspended its account for violating rules and deleting all evidence of what happened behind the scenes.

Related Reading | Why Ethereum Will Continue To Be A Market Leader, Coinbase Analysts

There’s been a lot of talk about what might have happened to the developers behind SQUID. In November, they closed their project, announcing on Telegram, “someone was trying to hack them, and they were abandoning it for good.”

                    Featured image by Pixabay and chart from Tradingview.com

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