Was the DeFi100 project a hack or a rug pull scam?

In May 2021, news broke out of the DeFi100 crypto scam that allegedly ran away with $32 million of investors money

As a well known macro strategist and market expert, Sven Henrich puts that the Cryptocurrency market is in its infancy and immature. There are possibilities of scams and digital frauds, but there are a lot of possibilities that need to be considered.

So yes, crypto has a lot of potential, but scams and hacks in the space are nothing new, and neither are they small in size that could be ignored easily. According to the reports, in the year 2021 alone, the world’s crypto scam is worth a staggering $7.7 billion. In comparison with 2020, this is an overall increment of 81% in a year.

In 2021 many scams through rug pulls or Ponzi schemes happened, including AnubisDAO, Uranium Finance, Poly Network etc. However, the DeFi100 crypto scam incident was somewhat interesting, which grabbed some extra attention. The reason could be its amount of approx $32 million, but on top of that, its confusion that was it a scam via rug pull or was it a hack?

When the DeFi100 coin came, and what did it bring?brought

As resources put it, the project named DeFi100 started in December 2020 and rolled out in February 2021. People might fall far because of the features of the project and the rewards it offers for users and traders in the community.

Firstly,Firstly DeFi100 was developed on the Binance Smart Chain protocol. The project had proposed its USP as users can invest in the entire Defi sector with just one DeFi100 token D100.

In other terms, it claimed that a user holding a DeFi100 coin would be considered to invest in the whole DeFi projects in the space. DeFi100 marketed itself as the S & P 500 of the DeFi sector.

It was obvious that people in crypto fell for the project bringing investment opportunities in decentralized finance projects altogether. The same thing happened as people started buying DeFi100 coins with the aspiration.

Everything was good on paper; still, something went wrong for DeFi100

In May 2021, a crypto analyst Twitter account with the title CryptoWhale first reported that DeFi100 had run with $32 million.

The news broke out like wildfire, and that created chaos among investors. All the efforts trying to reach the platform using the DeFi100 website went into vain as nothing was there except the inelegant message —

We scammed you guys, and you can’t do (inappropriate word) about it.

As the official DeFi100 coin website shut down, showing that inappropriate message and there was no official statement from the DeFi100 team, it was considered a scam, costing $32 million. But the possibilities of a scam or rug pull were doubted after a while when the team of DeFi100 responded.

The DeFi100 crypto scam later created the probability of a potential hack

The day after the crypto analyst CryptoWhale claimed the DeFi100 crypto scam on Twitter, the official Twitter handle of DeFi100 came forward and responded.

DeFi100 tweets stated that the claims that the scam was $32 million, which is baseless as the total market capitalization of the project waswere less than $2 million.

The following tweet from DeFi100 stated that the monetary loss in the hope the project failed to achieve is worse. They hadn’t left anywhere and were working on bringing the project back.

Lastly, they said the website had been hacked by hackers and taken down by them.

After a couple of days, the DeFi100 team stated that they had restored the DeFi100 website and would update later.

But still, when you try to find the DeFi100 website, it may not get you the results.

It’s because of the tweets by the DeFi100 team themselves the possibility of the DeFi crypto scam weakened, and the probability of website hacking got some wind.

What DeFi100 users could have done

Crypto enthusiasts and users should have considered the project’s authenticity and reliability before stepping in and investing in it. In the case of DeFi100, even the developers of the team behind the project were anonymous, but still, people went for it.

The hit and trial should be avoided when investing, and one should do his research before stepping into any project. And the all-time principle of investing is always there, which says ‘only invest enough which you can afford to lose.’

ALSO READ: Is DeFi About To Really Be FinTech’s Final Frontier?