Coinbase Deletes Rug Pull-Related Content

Rug pull scammers stole over $2.8 billion in crypto last year.

coinbase rug pull scam

Coinbase Global, the operator behind the biggest cryptocurrency exchange in the world, has removed content from its platform dedicated to helping investors purchase tokens related to the exit scams.

The Coinbase team deactivated articles explaining how to invest into at least three shady tokens, Reuters reported. The article mentioned that instructions linking to DeFi100 (D100), Mercenary (MGOLD) and SQUID tokens have been deleted. However, none of the rug-pull-related tokens were listed on Coinbase or supported on its crypto wallet.

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The decision came after increased suspicions around several tokens being involved with rug pull scams.

The company revealed plans to upgrade the safeguards on its informational webpages, which are currently created automatically following data being published on CoinMarketCap. 

Rug pull scams have drawn a lot of attention recently as an outcome of massive interest in decentralized finance (DeFi)  when thousands of crypto investors positioned to hunt cryptocurrency gems with expectations of finding those micro-cap coins which could generate unprecedented future yields. 

Many of them became easy victims for rug pull scammers that pretended to be legit cryptocurrency projects with promising concepts and high stake yields.

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The truth typically turned out to be disappointing, as these financial scammers withdrew the deposited funds and abandoned their projects as soon as the value of the fraudulent tokens reached a desired level. 

In 2021 alone, rug pull scammers stole more than $2.8 billion worth of digital currencies from their victims.

Related: How to Spot a Crypto Rug Pull Scam

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Author
Simona Ram

Simona Ram is a senior journalist at DailyCoin, based in Lithuania, who covers the forces and people shaping the Web3 industry and the areas where decentralized crypto assets meet the centralized world. She has experience in business communication within the financial sphere and has a degree in Foreign Languages, which helps her interact effectively with sources from diverse backgrounds. In her free time, Simona enjoys exploring new cultures.