Moar DEFI Drama

Do you remember how successful YFI was? Maybe you will also remember all those “YF” clones that appeared afterwards and how many of them rugged afterwards?

Well, it looks like this week has been no different. There is a new project named $CORE that appeared 1 month ago. Its proposition was quite unique: 10k $CORE tokens minted, deflationary model, and liquidity locked in their LPs (meaning LPs can not be “broken” to get back the underlying assets). You can stake those LPs to get a % in $CORE of every tx involving any $CORE pair.

$CORE’s price has fluctuated a lot but the project is still gathering some attention in the DeFi space, so obviously many clones appeared to use the same tokenomics as the original one. Most of them either failed (no volume which means no fees which means no rewards from their LPs) or either rugged.

This week we had 2 major rugs with these clones. One was $KORE, which had around 1k ETH locked liquidity. Code had an infinite minting function that was discovered a few weeks ago by some community members but was disregarded by the $KORE community. Few days ago $KORE dev used it to mint 1m tokens and dump then in the market, leading its price to 0 and exiting with 900ETH (Around 350k$)

Another rug was $LCORE. The amount rugged in this one wasn’t that high, however it looks like some community members (such as El_Crypto_Chapo) managed to doxxed this dev and he asking to give all the money back.

Will $LCORE dev return the stolen ETH? Will Chapo fulfill his threats and go against him with everything he has? The only thing we know is that the crypto space is brutal out there, plenty of mine fields but also plenty of good opportunities. As always DYOR when investing in a project and don’t put any more that you can afford to lose. Stay safe!