CUBs Giveaway Results + My First Experience in a "Rug Pull" (Must Read Tips + Tricks for all BSC Users)
Hey everyone!
Hope you're all enjoying your weekend.
I have been meaning to do the distribution of my previous giveaway for the past few days, but been a bit busy this week.
I woke up this Saturday morning, ready for a new day to study for my exams, trade some shitcoins, promote some LAMBO token (intro post) and finally write this post, but when I did my routine morning check of prices, I almost shat the bed... (giveaway results at the bottom)
My First Rug Pull
It turns out the admins decided to call it quits after just less than 2 weeks of development
My Experience
As I was the largest holder (had 15% of supply across 2 wallets), I spoke with the main dev every day. I mainly gave suggestions regarding their road map, but we also chatted about our lives, talked about ourselves, and he/she even sent me resources to learn solidity! They had AMAs, spent money on an audit (which cost them close to 1% of their market cap at the time) and they gave me daily updates regarding their progress, I thought this thing couldn't be more legit.
Our last chat, he/she didn't even see my final suggestion!
The main dev even told me to sell some of the token (since some new investors didn't like my wallet holding so much) but I told him since I believed in the project and told some of my mates (sorry guys) about it, I didn't want to dump on them - but maybe the warning was just a little bit of compassion from the devs for what they were about to do next.
They know I am a uni student from Australia, I know they are (supposedly) uni students from Portugal, and since they know my timezone, I believe they waited for me to be asleep (I usually sleep around 2am) and started dumping just before 3am in my local timezone.
When I went to sleep, my stake was worth ~$15k USD market value, and when I woke up I only managed to sell about 1.8 BNB worth (about $1.1k).
Warning Signs From This Project
- No actual proof of development
- Anonymous devs (many tokens post random LinkedIn profiles - if their LinkedIn profile doesn't mention the coin back, likely scam)
- Did not meet their first deadline (meant to reveal more info regarding their first on chain dapp on 5th of May)
- Dev claimed largest holder (20% at the peak) was his own personal wallet, then it mysteriously dumped about more than half of its net worth one day and the dev then claimed it was his friend's wallet instead
- Their name was "LAMBO"
Additional Warning Signs in General
- MOST IMPORTANT: If you are chasing low cap coins (like under $10-50k market cap), always buy a bit and try to sell it before buying more - many coins can ONLY be bought but not sold
- I'd say 50%+ of new coins shilled on random Telegram groups can only be bought but not sold, so this is most basic first check
- Talk to the team first if you can to make better decision, post questions on their Telegram and see if they delete or answer
- Look for audit (most young projects actually won't have one from a legit, so no biggie)
- Despite LAMBO passing all of the above, they still turned out to be a scam, so always be cautious and look for any additional warning signs as the project develops - if in doubt, likely scam!
What I Learned
Probably nothing lol - but hopefully I will be less greedy and take profits when necessary!
Cub Giveaway Results
As the giveaway was truly underwhelming (only 3 participants!), instead of doing a draw, I will just send 1.67 CUBs (5 divided evenly) to each participant, thanks @abrockman, @holoz0r and @masterthematrix! 1.67 CUBs have been sent to each of you!
Posted Using LeoFinance Beta
CUB giveaway transactions queuing, looks like BSC is a bit slow tonight!
Holy shit, that's a bold share - despite what the 'fake value' of your stake was at one point hopefully you didn't actually lose $15K?!?
@tipu curate
Upvoted 👌 (Mana: 51/78) Liquid rewards.
Thankfully I got in early (first non team member investor) and only invested around $700. I took profits of nearly $2k around the peak (where my stake was worth $70k), but I put that $2k and some more back in during some "dips", so in the end I ended up pretty much net even, I think even in profit by a couple hundred over the whole
Honestly, the biggest loss I incurred was how much time I spent talking to the team about suggestions and essentially moderating the chatroom on Telegram. Used up hours every day which I could have been using to study!
Ouch man, that's rough. There are some stone cold bastards out there and this is just another example showing that sometimes doing your own research still doesn't protect you from the sharks of crypto.
I did chortle a bit that one of the warning signs you said above was their token was called LAMBO 😃
Jeez! So sorry about this. If I lost $15k right now I'll probably sink into depression. I hope you recover this loss fast. Screw those sharks
Blimey. That's a surprising one given they passed most of your recommendations.
Hopefully the loss was mostly "on paper".
The mind boggles how someone can set out to do that (maybe they didn't but just got greedy?) and be all pally pally along the way. They definitely inhabit a different universe from mine.
I'm pretty sure that what ever they've made from it won't make them happy.
Thanks for telling the story. It's good to be reminded of these things.
!LUV1
Posted Using LeoFinance Beta
Exactly! I have never been so shocked, I felt blindsided by this, especially since I considered these people my friends, given the amount we communicated (both professionally and socially) every day.
And yes, I just commented this elsewhere but luckily I got in super early and since I took some profit at the peak, I think I'm actually net positive from this (by a couple hundred at most).
However, the biggest loss I incurred was definitely how much time I spent talking to the team about suggestions and essentially moderating the chatroom on Telegram. Used up hours every day which I could have been using to study!
I assume they probably didn't set out to scam, but since this was their first project, maybe they just over-promised and gave up when they realised they couldn't actually achieve any of the things they promised. Then again they may have just been lying about everything so who knows, this could have been their 10th scam already!
Hopefully this story serves as a timely reminder to be careful, as there seems to be more scams than ever right now
!ENGAGE 30
Posted Using LeoFinance Beta
ENGAGEtokens.I'm not even mad. :D
But its paper money only right? :)
Yikes man, that sucks.
You joke that you haven't learned anything from this shitshow, but you definitely have.
We all live and learn and you'll be a better investor for the experience no matter what you're feeling right now in the moment.
When the dust settles a bit, I'd love to hear your opinion on the team behind Cub Finance.
Do you see any comparisons or the complete opposite?
Posted Using LeoFinance Beta
It is difficult to imagine how you are feeling now. I would not like to be in your place. I think you will remember this very expensive life lesson for the rest of your life.
Posted Using LeoFinance Beta
This is a sad story.
You want a project to be really successful as you believed in it but got ditched by the developers.
There are scams everywhere these day and this is making actual new players life even harder as people don't trust the legitimate projects as well.
Very sad indeed.
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