- Anti-scam advocates WarOnRugs have rug pulled their own token, Fairmoon
- The group stole over $500,000 worth of user funds under the guise of a token burn
- The event is another reminder that such investments are hugely risky
WarOnRugs, a group that claimed to be working towards identifying and pursuing scams in the crypto space, has caused uproar by itself rug pulling its Fairmoon project, taking over $500,000 in user funds with it. News of the Fairmoon rug pull came late last night under the guise of a token burn, which in fact saw over 500 million FAIR tokens sold for BNB by someone in control of the developer wallet, thought to be a developer by the name of Shappy. The fact that WarOnRugs spent several weeks accusing Safemoon of being a scam goes to show that, when it comes to crypto, very little is what it appears to be.
Fairmoon Token Burn Was WarOnRugs Exit Scam
Fairmoon was a platform and associated cryptocurrency created by WarOnRugs, seemingly out of a desire to operate a fair cryptocurrency after ‘outing’ so many scams in the space, including a strong attack on Safemoon. Launching in March, by yesterday the liquidity pool on Binance Smart Chain had reached several hundred thousand dollars, and with a 10% token burn planned for late last night, the community was looking forward to the reduction in supply:
However, this positivity soon turned to concern when 557,800,000 FAIR tokens, the amount supposedly being burned, were sold for 1,1170 BNB tokens on PancakeSwap:
Admins tried to calm the quell, suggesting that it could just have been the WarOnRugs team moving liquidity from one pool to another in relation to the burn, and asked users not to trade or they might lose their funds. When it was revealed that WarOnRugs’ and Fairmoon’s social media presences were being removed however, the writing was on the wall:
The fact that WarOnRugs would itself rug pull, especially after being so damning in its criticism of Safemoon, has to rank up there with the most ironic occurrences in cryptocurrency’s short history. Before deleting its Twitter handle, the group posted a series of tweets that attempted to explain their abrupt departure (with hundreds of thousands in other people’s money):
Evidence that @WarOnRugs had clear intention to commit fraud and steal money from his community.
— WOOlf (@ImNotTheWolf) May 19, 2021
BSC Shitcoins Are a Risky Venture
With people in the Fairmoon Telegram group talking of losing six figure sums due to WarOnRugs betraying their supposed principles, the Fairmoon rug pull is another example that investing in new, low cap shitcoins is a risky business – for every Shiba and Safemoon there is a BitConnect.
Larger, more established projects may not make you a millionaire overnight, but they’re less likely to make you broke overnight too.