CLIFF token collapses by 98% after investors’ funds were stolen by project creators

Scammers used the Rug Pull scheme to deceive altcoin buyers

22.12.2022 - 08:15

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2 min

What’s new? The price of the CLIFF token of the Clifford Inu project dropped by 98% after the founders used the fraudulent scheme Rug Pull and withdrew investor funds. It is also known that the team deleted all of the project’s social media accounts. Representatives of WhaleChart reported on Twitter on December 21.

⚠️ Rugpull Clifford Inu drops 98%. They have already deleted their social media accounts/groups. — whalechart.org 🐳 (@WhaleChart) December 21, 2022

Rug Pull is a type of scam in which developers abandon a project, fail to deliver on promises, and take investors’ money. Having raised enough money through the PR of the roadmap, which implies sustainable development, the scammers delete the social media and leave the project without support, leaving investors with devalued tokens.

What is known about the project? According to the website, CLIFF was supposed “to be the biggest meme token on Ethereum.” The creators claimed that “the true burn mechanism is hardcoded into the token’s DNA” which will boost the value of the asset. In addition, it was planned that the asset would be used for earning as well as governance and voting on the development of the project.

After the creators of the project deleted social networks and withdrew millions of dollars to addresses beginning with 0xf7e57, the value of the token fell by 98,8%. As of December 22, 08:15 UTC, 1 CLIFF is trading at $0,000000044325 (CoinGecko’s data).

In July, the creators of the Teddy Doge token implemented the same scheme, stealing $4,5 million from investors. In August, the token of blockchain game Dragoma collapsed by 99% due to stolen assets, with PeckShield analysts suggesting that the project’s developers were behind the withdrawal. In the same month, the creators of the SudoRare protocol used the Rug Pull scheme. They withdrew $845 000 in cryptocurrency from the project. The stolen funds were divided equally and transferred to three wallets, 173 ETH each.

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