Teddy Doge, one of Dogecoin’s most well-known impersonators, has been accused of rug pulling by blockchain security firm PeckShield. Earlier this week, the BNB Chain-based Teddy Doge (TEDDY) token plunged more than 99.9% in 24 hours after selling more than $4.5 million of the token over the weekend. On Tuesday in the Asian session, TEDDY was selling for a fraction of a dollar, and some analysts called it a “soft rug pull.” Over $4.5 million dollars in Teddy Doge TEDDY coins were exchanged for other cryptocurrencies. The news sparked fear and concern among cryptocurrency investors. Let’s look into it further to find out more.
What is Teddy Doge?
Teddy Doge is a meme coin known for its viral status on social media. It offers cross-chain products, non-fungible tokens (NFT), and token swaps, and has raised hundreds of thousands of dollars through an initial coin offering (ICO). Cross-chain transactions involve the transfer of data from one blockchain to another, and NFTs are tokens representing ownership of real or virtual goods.
What precisely has occurred?
On Monday, security firm PeckShield issued a statement explaining the situation. In wallets linked to Teddy Doge’s deployer contract, TEDDY coins were exchanged for wrapped BNB (WBNB), an Ethereum-based BNB equivalent.
According to the PeckShield team, the deployer deployed the contract and transferred a substantial amount of TEDDY to the address 0xdbe8ef79a1a7b57fbb73048192edf6427e8a5552 before pumping and dumping the TEDDY price. Following the incident, they dubbed the activity a “soft rug pull.”
The crypto wallet linked with the project traded TEDDY for wrapped BNB, which was then traded for more than 10,000 BNB and 2 million BUSD, according to PeckShield. The funds were transferred to Binance, a leading cryptocurrency exchange.
The developers’ authority to take control of the liquidity pools made the project possible. Both sides of tokens are initially seeded in liquidity pools owned by smart contracts on DEX (decentralized exchanges) like PancakeSwasp.
South Korean Security Firm Sooho Remarks
A South Korean blockchain security firm, Sooho, has also taken note of the situation. This project was also dubbed a “soft rug pull” by the company. According to Jisu Park, the firm’s CEO, the distribution allotted to the manager’s account appears to have been divided and sold in bulk rather than by breaking the code. It’s not a hack; it’s a rug. However, it is unclear whether they have given up, so we can refer to it as a “soft rug.”
Rug Pulling Explained
Rug pulls are decentralized finance scams. The developers legitimately work on a blockchain, draining the project’s liquidity pools. As a result, the rug was pulled out from under the investors, causing a dramatic drop in the tokens associated with the project.
PeckShield discovered that the makers of the DogeMother rug withdrew after promising consumers assured incentives for acquiring the token. Honeypot schemes often deceive people into purchasing a cryptocurrency with extravagant promises to prevent them from selling it.
As the name implies, their withdrawals become entangled in a contract because only whitelisted users are permitted to withdraw funds. Most of these tokens appear on the BNB Smart Chain, which enables the simple generation of new tokens due to low fees, and the vast majority of these have turned out to be scam currencies. Even though the meme currency fever has subsided, scammers still seek to profit from it by attracting new investors with questionable tokens.
Teddy Doge’s Team Reaction
Teddy Doge’s project administrator claims that he is unsure whether the problem was caused by a developer wallet leak or a shortcoming in our cross-chain bridge. He also advised investors not to buy the token right now. He stated that the cross-chain bridge has been closed and that repairs are underway. Furthermore, he proclaimed that buyers of the TEDDY token would soon get DRAC, a new token, as the project’s name would be changed to Drac Network.
While the Teddy Doge scenario is regrettable, many viable projects are still ready for investment. For example, one of the best crypto presales on the market is Metaverse’s play-to-earn platform Tamadoge (TAMA). Tamadoge is a breed of 4,000 virtual interactive NFT pets hatched on the Polygon blockchain without any owners (weh). They aim to create a metaverse pet and interactive NFT playdate games that will allow you to earn DOGE tokens. The TAMA presale is still live, so you are still in time to Buy Tamadoge.
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Tamadoge - The Play to Earn Dogecoin
- '10x - 50x Potential' - CNBC Report
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- Listed on Bybit, OKX, Bitmart, LBank, MEXC, Uniswap
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