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A ‘War on Rugs’ Has Been Declared Against Ethereum Creator Over SHIB Transfer

Americans show interest in Ethereum ahead of other countries

The Telegram group War on Rugs hates rug pulls. So, naturally, it’s…trying to pull the rug out on Ethereum.

The watchdog group, which says it’s composed of developers and auditors, has created the Rug Ethereum (RETH) token in retaliation for Ethereum co-founder Vitalik Buterin’s decision to transfer millions in Shiba Inu (SHIB) to charity while simultaneously crashing the market for the token.

“Vitalik rug pulled Shiba, innocent investors have been hurt,” War on Rugs told Decrypt via direct message the day before launching the token. “He should never be shown as a hero for this.”

Binance CEO Changpeng Zhao, who agreed to list the token on Binance’s “Innovation Zone,” has called SHIB “super high risk.” And War on Rugs, which looked at the smart contract, noted earlier this year that Buterin had a very large stake in the token, which meant it could be vulnerable.

A rug pull is a type of scam in which developers abruptly leave a project and take investors’ money with them. They’re common in the Wild West of decentralized finance (DeFi), where people can go to get crypto loans, earn interest, and trade assets without the help of a financial intermediary—or the insurance such intermediaries provide.

Buterin, however, didn’t develop the token—he received it. The creators of the meme token sent trillions of the sub-penny asset to Buterin, who is revered among Ethereum acolytes for his intellectual prowess and his seeming lack of concern for the things money can buy. No Lambos here. Sending the funds to Buterin’s wallet lent the project the veneer of legitimacy while also theoretically decreasing the supply because Buterin wouldn’t touch the funds.

Theoretically. On Wednesday, Buterin did just that, removing the tokens from a liquidity pool in Uniswap and contributing to a crash in token price. As recently as Tuesday, the price of SHIB was $0.00003394. By Thursday, it had fallen by more than half, to $0.00001563.

Buterin, meanwhile, was feted in some camps as a hero for shucking off a project he didn’t want to be associated with and giving the loot to charity. SHIB is run on the Ethereum blockchain, where its burgeoning popularity contributed to high transaction fees and network congestion, already a problem for the network. Buterin has yet to speak publicly about his motivations.

To War on Rugs, Buterin is the villain.

The RETH token, available on PancakeSwap, is its ironic revenge. Each transaction using the token incurs a 4% charge, half of which goes to holders and the other half of which goes toward borrowing ETH.

That ETH is then dumped on DeFi crypto lending marketplace Venus Protocol in favor of Binance Coin. (Venus, unlike many other DeFi lending platforms, is built atop Binance Smart Chain, not Ethereum.) This, says War on Rugs in a Medium post, will ultimately “create constant sell pressure on ETH pairs on BSC,” meaning the price of ETH will become depressed. (In a twist, it also sent Vitalik 50% of the 100 quadrillion supply, though it has banned his wallet from using it.)

RETH has more than 2,100 holders since going live this morning, according to blockchain tracker BscScan.

The move adds additional intrigue to a brewing cold war between Ethereum and Binance Smart Chain, a rival network for DeFi applications established by cryptocurrency exchange Binance. Some have argued that Binance benefits from congestion on Ethereum, providing it motivation for listing bulky speculative tokens such as SHIB on its own exchange.

And, now, it will literally be getting the benefits of RETH sales, whether it has the appetite for this rug pull or not.

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31 Comments

  1. This has to be the funniest idiotic rage idea out there. How can someone be upset that SHIB got rug pulled, if the devs specifically manipulated it’s available token count to inflate market cap to insane levels and trying to legitimize the whole project by gifting the coins to someone they just hope won’t do anything with them. If only coinmarketcap wouldn’t count locked coins into the marketcap this whole thing wouldn’t exist.

  2. >The RETH token, available on PancakeSwap, is its ironic revenge. Each transaction using the token incurs a 4% charge, half of which goes to holders and the other half of which goes toward borrowing ETH.
    That ETH is then dumped on DeFi crypto lending marketplace Venus Protocol in favor of Binance Coin. (Venus, unlike many other DeFi lending platforms, is built atop Binance Smart Chain, not Ethereum.) This, says War on Rugs in a Medium post, will ultimately “create constant sell pressure on ETH pairs on BSC,” meaning the price of ETH will become depressed. (In a twist, it also sent Vitalik 50% of the 100 quadrillion supply, though it has banned his wallet from using it.)

  3. Ya know, I may not be a smart man by any means. But I feel like a 27 year old genius is the last person in the world I’d want to fuck with, let alone his “baby” ETH.

  4. What a bunch of idiots.

    They should rather try to attack the assholes who keep sending their coins away to well known people, dumping unwanted responsibility and connections onto them.

  5. “The borrowing process is done manually at the moment to allow maximum flexibility”

    Manually, sure 😛

    “We also sent half the supply and 100% of the liquidity to Vitalik’s wallet just like Shiba Inu developers did. If he ever know how to use Binance Smart Chain he could have a lookWe anyway took care to permanently ban his wallet in the token so he can never rug investors like he did with Shiba Inu.”

    mmmh, yes, probably Vitalik doesn’t know how to transfer found on BSC and sell from another wallet. Sure.

    ” the generous Venus APY rewards for lending and borrowing assets will be re-injected into the token, bringing back value and money to the project as well (rather than reinjecting the BNB to build a stronger price floor and making the price harder to move up on the long run).

    how? LP?

  6. I’m going to make this short and simple:

    This group of people (WoR) have been caught making their own cryptocurrency that they rugpulled themselves (and..also used source code from another to make), accused another cryptocurrency of being a rugpull (that..they also invested in), and they refuse to communicate with the people they accuse of rugpulling their coins.

    Articles and posts on this group shouldn’t even be made, they are literally scammers. Don’t give them any attention. They are the Keemstar’s of Crypto. They don’t care about backlash, they care about views and attention.

    No more posts need to be made on these morons.

  7. Y’all really mad at the man for donating to a country in need . I hate this. And I’m starting to feel bad about the crypto space in general. A crash is imminent and I can’t wait so it can weed all the crypto fuckboys out

  8. Imagine a marketplace that hates people and “codes” that hate for not supporting their “currency”. Its like a country sanctioning another for disagreements.

  9. >*because Buterin wouldn’t touch the funds.*

    If you send someone some money in this market intentionally, they’re damn well within their own rights to buy, sell, or hold.

  10. Yeah it’s not like he asked to receive these coins, if you’re sending coins to someone else you better be prepared for the fact they might use them someday.

  11. War on Rugs are intentionally contentious for no reason but to bring attention to themselves. They don’t care about the crypto community or rug pulls or really anything… except being trolls and arguing to show how “right” they are.

  12. I guess my question is will this actually depress the price of Etherium? I have noticed it going down this morning but it doesn’t seem to be going down at any kind of an alarming rate above what it normally does.

    I apologize if this question is stupid I am somewhat new to crypto and do not yet fully understand the back end of it and someone can depress the price of another cryptocurrency with fees from theirs.

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Bullish on IOTA and this was 3 years ago.

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