• Solidus Labs mentioned fraudsters deployed over 117,629 rip-off tokens this 12 months.
• The determine represents a 41% enhance from what was obtainable final 12 months.
• In 2020, scammers deployed measly 1,548 initiatives in comparison with 83,368 in 2021.

In accordance with Solidus Labs, the crypto market integrity platform, fraudsters deployed greater than 117,629 rip-off tokens on-chain within the first 11 months of this 12 months. The determine represents a 41% enhance from what was obtainable final 12 months.

Solidus Labs famous within the inaugural report that there have been 83,368 rip-off tokens in 2021, an over 5,000% enhance from 2020, which was measly 1,548 initiatives. Curiously, in response to the analysis agency, 8% of the initiatives on the Ethereum community have Rug Pulled, and 12% of initiatives on the BNB Chain turned out fraudulent.

The report learn partially: “Over the previous 5 years, rug pulls have ballooned from a minor drawback into a serious epidemic, with rip-off token builders stealing billions of {dollars} from hundreds of thousands of retail traders. In our inaugural Rug Pull Report, we share unique information, analysis, and case research to assist perceive this rising cash laundering drawback.”

Notably, the crypto group considers the rise and fall of Terraform Labs initiatives as probably the most vital rug pull within the Web3 trade. In accordance with information from the market monitoring web site, CoinMarketCap, the utility token of the Terra Luna blockchain, LUNA, fell from its all-time excessive worth of $119.18 to $0.00001675 inside six weeks.

Concurrently, Terra Luna’s algorithmic stablecoin, TerraUSD (UST), which ought to trade with the US greenback at a one-to-one ratio, misplaced its worth from $1.05 to $0.006218.

Following the unprecedented collapse of the 2 Terra Luna initiatives, its founder Kwon disappeared from public view.  And in September, a South Korean courtroom declared him wished for violating the nation’s capital markets laws.