Skip to main content

Defi Token Exposed as Pump and Dump Scam in Leaked Telegram Chat 

Defi Token Exposed as Pump and Dump Scam in Leaked Telegram Chat 

A leaked Telegram discussion by 50 so-called crypto influencers has exposed the extraordinary steps they take in order to profit on the back off unsuspecting defi investors. According to a leaked screenshot of the chat, an elaborate plan to defraud defi investors using the worthless “$Few” tokens had been hatched. $Few tokens would be airdropped to some of the influencers who in turn promoted these to unsuspecting followers on Twitter.

Once the “new flash mob project” gained traction, members of this conspiracy planned to sell the “airdropped” tokens to defi investors and thus make a profit in the process. According to a report by Boxmining, the plotters were attempting to capitalize on the current defi hype after missing out on the MEME airdrop.

However, it appears the plot collapsed after a screenshot of the alleged discussion began circulating on social media. On Twitter, some users reacted angrily to the revelations and accused some of the prominent names in the defi space of being “scammers.”

Defi Token Exposed as Pump and Dump Scam in Leaked Telegram Chat

One of the exposed plotters, Anthony Sassano, cofounder of Ethhub.io and a self-proclaimed defi educator, has since issued an apology for his role in the scheme. In the screenshot, Sassano appears to tell fellow plotters that “we need people to dumb on.” Sassano has been roundly condemned for his role in the botched scam as well as for his attempts to cast his comments as a joke.

However, writing on Twitter, Sassano strikes a more conciliatory tone as he apologized:

I know for some, the ‘I was just joking’ defence is a weak one and I totally understand why people are sceptical of it. I sometimes forget that text-based humour does not translate at all and can very easily be misinterpreted. I will be more cognizant of this going forward.

Sassano insists that he is not “here to dump on or scam anyone.” Instead, he wants “to educate and grow the adoption of Ethereum and defi” which will always be his “number [one] goal.”

While Sassano says he will try to rebuild his tarnished image, some Twitter users are skeptical. One user, the Crypto Detective is not particularly sanguine about this show of remorse. Reminding Sassano of his past deeds, the Crypto Detective says:

Will be hard to earn respect now mate, shilled Yam at the top, promoted Safe at 4.5k and now ‘need to dump on someone.’ Hope you can change, a PR tweet isn’t gonna help, will see your next actions.

After offering the apology, Sassano reportedly burned the tokens, as did Alex Masmej, another influencer exposed in the leaked screenshot.

Just like Sassano, Masmej tries to trivialize the issue saying “no harm was done as the token was never listed.” However, the Boxmining report suggests that “some people actually ended up buying $FEW tokens because of the influencers’ promotional posts on Twitter.”

It adds that others, knowing full well that the token is not listed on any exchange, “tried to profit off the hype by listing fake $FEW trading pairs on Uniswap in an effort to get some members to trade.”

The exposure of the $Few “joke” highlights some of the risks facing defi investors, which also include exit scams. However, the apparent participation of influential individuals in well-orchestrated pump and dump schemes like $Few adds to worries about the defi boom. Regulators eager to curtail the growth of the crypto space will likely point to such scams when justifying any future interventions.

What do you think of the $Few defi joke? Tell us your thoughts in the comments section below.

The post Defi Token Exposed as Pump and Dump Scam in Leaked Telegram Chat  appeared first on Bitcoin News.



from Bitcoin News https://ift.tt/3i8AK6R

Comments

Popular posts from this blog

Mt Gox Creditors Updated, Trustee Says Rehabilitation Custodian Is ‘Currently Preparing to Make Repayments’

On August 31, 2022, the Mt Gox trustee Nobuaki Kobayashi explained in a recent letter that the rehabilitation custodian is “currently preparing to make repayments” to Mt Gox creditors. Trustee Updates Mt Gox Creditors — Repayment Date and Exchange Still Unknown Last week speculation and rumors concerning the release of 140K bitcoin ( BTC ) from Mt Gox littered social media platforms and headlines. Bitcoin.com News covered the situation six days ago as a number of people and Mt Gox creditors called the rumors “ fake news .” During that same period of time, a bitcoin whale transferred 10,000 BTC to unknown wallets, and a 2018 annotation , heuristics, and clustering methods show the funds likely originated from the June 2011 Mt Gox hacks. Following the mysterious whale transfer, last Wednesday, Mt Gox published an official update from the court trustee Nobuaki Kobayashi that explains the court is “currently preparing to make repayments” to creditors. Mt Gox creditors have been wait...

DefiDollar Listing on AscendEX

PRESS RELEASE. AscendEX, formerly BitMax, an industry-leading digital asset trading platform built by Wall Street quant trading veterans, has announced the listing of the DefiDollar Token (DFD) under the pair USDT/DFD on Apr 29 at 1:00 p.m. UTC. DefiDollar is a DeFi lab that aims to bring mass adoption to DeFi with a wide-ranging product suite. The first product offering to go live will be the stablecoin index – DUSD, with ibBTC and optionCoin currently in development. DefiDollar (DUSD) aspires to be a risk-insured stablecoin layer for DeFi. It is designed to provide a safe and stable way for users to hold their assets with DUSD being optimized for peg safety, yield, and diversification. DefiDollar uses DeFi primitives to stay close to the dollar mark. DUSD provides an avenue for diversifying stablecoin holdings to hedge against an event where the underlying stablecoins like Tether or DAI deviate from their peg. DUSD is collateralized by Curve Finance LP tokens. DFD is the n...

International Crypto Exchange Luno Adds Bitcoin Cash Trading

Luno exchange has added bitcoin cash trading to the platform following feedback from its client base. BCH is now only the third cryptocurrency available for trading on the exchange, in addition to BTC and ETH , but more options could be on the way once Luno determines that they are credible enough. Also Read: Bitflyer Adds Bitcoin Cash Trading Across Europe and the US Luno Adds Bitcoin Cash Trading Luno, the London-headquartered company formerly known as Bitx, recently announced that bitcoin cash was made available on its cryptocurrency exchange. Starting from Monday, September 23, customers at Luno are now able to store, buy and sell BCH on the platform. The reason given for adding BCH to the exchange is feedback from users in developing markets that convinced Luno to expand their offering from previously just BTC and ETH . Marcus Swanepoel, CEO of Luno, said , “We are in a new and exciting financial era. Developing economies are leading the large-scale adoption and appli...