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Will rising rugpulls on Binance Smart Chain affect BNB’s tempo? 4m ago by ambcrypto.com

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Rugpulls on the BNB network have started to rise, with one address creating multiple fake tokens.
However, sentiment around the protocol remained high, and its social volume grew.

Binance [BNB] has witnessed massive uncertainty over the past year, despite making progress on its protocol and forging new partnerships. One such deterrent has been the increasing number of rugpulls on the BNB Smart Chain [BSC].

Rugpulls abound

According to a tweet by AegisWeb3 on the 6th of November, a scammer was creating deceptive tokens and executing scams on the Binance Smart Chain. They moved initial funds to new addresses before creating these tokens, sending any extra money to a third address.

A Scammer Executes 40+ RugPulls in 11Days
AegisWeb3 has discovered a scammer who specializes in creating scam tokens on #BSC and executing #RugPulls.
Scammer’s Addresses:
0x09399eCe3B8FB81B7d38D7CaCb3b134141739cdA
0x588B601F4050d56A1D6FCf633828A3c5e33B9286 pic.twitter.com/7zjID2I8A2

— AegisWeb3 (@AegisWeb3) November 6, 2023

Thus, in just 11 days, the scammer carried out over 40 rugpulls.

For context, a rugpull is a crypto scam where creators dishonestly take investors’ funds, rendering tokens worthless. In this scenario, the scammer’s actions can erode trust in the BSC network. People might become wary of investing in BSC projects, fearing that they could be scams.

Additionally, these scams can cause financial losses for investors who fall for them. This kind of activity can also attract regulatory attention, which could lead to stricter rules and oversight in the crypto space, potentially stifling innovation.

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Sentiment remains high

Regardless of the challenges faced by the network, BNB’s Weighted Sentiment and Social Volume had witnessed a spike at press time. This implied that the network was still gaining popularity.

The price of the BNB token remained unaffected and continued to soar as well. At the time of writing, it was trading at $252.30.

Source: Santiment