This Rugged FTM-Based Protocol Sends A Warning About DeFi Projects

The safety of the DeFi and especially the FTM ecosystem is shaking as “Tomb Fork” projects seem to be the perfect place for scams to thrive. Even after some investigation, what might look like a safer project can still turn out to be a fraud. Recently, PulseDAO got rugged. Allegedly, their own dev turned against the and KYC might not be enough to hold this person accountable. Tomb Forks And Rug Pulls As per Chainalysis data, in 2021 DeFi rug pulls took over $2.8 billion worth of crypto and accounted for 37% of all cryptocurrency scam revenue in the year, versus just 1% in 2020. A risky model called Tomb Fork, often FTM-based, has become perfect for rug pulls and many investors keep falling in. Pulse was a project that allowed users to “create their own prediction markets about anything.” They launched a token model with the promise of rewarding “all participants fairly, while also making the network resilient.” PulseDAO was a Tomb Fork. Based on Tomb Finance, Tomb forks are algorithmic stablecoin projects that peg their token to another coin, originally FTM. In the case of Tomb Finance, they intend to “create a mirrored, liquid asset that can be moved around and traded without restrictions.” The PulseDAO Rug The rug was confirmed by Rugdoc.io, who had previously warned that the project had a risk of governance mishandling and they needed their contracts to be subjected to a full ...