- The Solana blockchain crossed $2 billion in total value locked earlier today before the biggest rug pull in the project's history.
- Luna Yield, an ecological liquidity farming project, deleted their website, Twitter and Telegram handles and withdrew nearly $10 million in liquidity.
- SolPad, Solana's finance launchpad, recently hosted Luna Yield IDO on their platform, and the team has reportedly contacted a third party to investigate further.
Solana's price rally has slowed down after a two-week-long bullrun. Users fear a rug pull and loss of nearly $10 million as Luna Yield goes dark on social media.
Rug pull from Luna Yield impacts traders in SOL ecosystem, users unable to "unstake" funds
Earlier today, when the Luna Yield team took down the website and went offline on all social media, Twitter and Telegram handles, users moved to "unstake" funds from liquidity pools on the project. This move was unsuccessful, and traders have lost nearly $10 million in the biggest rug pull on the Solana ecosystem.
The following image shows documented failed attempts of a Luna Yield user on the Solana explorer.
A screenshot from a user who attempted to unstake funds from Luna Yield’s liquidity pool.
Though the user attempted to "unstake" funds, these attempts were unsuccessful due to zero balance in the pool. The Luna Yield team who set up the liquidity pool staking contract moved funds from the "pools" in which they were staked.
There is evidence of wrapped Bitcoin leaving the staking pools.
A screenshot of the address that allegedly authorized the rug pull transactions.
On further investigation, users in the community identified the address of the "owner" of the program, who approved the transactions leading up to the rug pull. The user with the address "ivBMuQdExFYSQraWteitugJ5AixJF9AeVwgdCjQhGwM" funded the mint authorization of the LUNY token (Luna Yield's native asset).
It is currently unclear whether the funds ended up on a centralized exchange or a bridge. Recently, the DeFi community has voiced concerns about the lack of transparency in the Solana ecosystem since several things continue to occur under closed source.
Luna Yield had an initial decentralized offering (IDO) on SolPAD, a launchpad on the Solana blockchain, on Tuesday. SolPad shared the news on Twitter.
Luna Yield, the latest IDO on our Launchpad, seems to have some problems. The Luna Yield Team took down their website and all other social media. They also withdraw all liquidity. SolPAD still can't reach Luna Yield Team to figure out what happened.
— SolPAD (@FinanceSolpad) August 19, 2021
The launchpad team claims to have contacted third parties to investigate the problem.
A developer building on the Solana network behind the Twitter handle @hoaktrades audited the rug pull incident and informed the community of critical details in a long thread
Ok... So I was going to attempt finishing the Serum library tests and stream it tonight but Luna Yield decided to rug pull and steal something like $~8M (can't attest atm)
— hoakegani (@hoaktrades) August 20, 2021
A THREAD to, hopefully, pill all of you degens on #Solana to pay attention to what you're doing.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Celebrity meme coins controversy continues amid Pump.fun revenue dominance
Pump.fun outperformed the Ethereum blockchain on Tuesday after raking in $1.99 million. Following this achievement, a meme coin based on actress Sydney Sweeney was the subject of controversy after its developers dumped their bags on investors.
PEPE's on-chain metrics indicate potential rally after weeks of silence
PEPE has struggled to see any significant price move after reaching an all-time high in May. Increased adoption rate and low MVRV ratio indicate a bullish run may be on the horizon. A single PEPE outflow from Binance worth $14.7 million gives credence to signs of bullish expectation.
Ethereum has failed to overcome key resistance despite bullish sentiment surrounding ETH ETF
Ethereum (ETH) is down more than 1.4% on Tuesday following another ETH sale from the Ethereum Foundation. Meanwhile, crypto exchange Gemini's recent report reveals that ETH ETF could see about $5 billion in net inflows within six months of launch.
Crypto community blasts Polkadot following report of treasury spending
Polkadot reports $87 million of treasury spending during H1. Crypto community members expressed harsh feelings toward the DOT team's high spending. DOT is up more than 2% in the past 24 hours but risks correction following the report.
Bitcoin: BTC price correction could end in July, according to seasonal data
Bitcoin (BTC) price appears poised for a decline this week, influenced by slight outflows in US spot ETFs, selling activity among BTC miners, and a combined transfer of 4,690.28 BTC to centralized exchanges by the US and German governments.