Coinbase Discards Cryptocurrency Links After ‘Rug Pull’ Threats


Coinbase Global has removed “how to buy” instructions for almost three crypto tokens due to ‘rug-pulling’ threats that can lead to investors losing their investment, reported on Thursday, February 10, 2022. The purpose is improve security measures.

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Coinbse Global Inc is an American company operating as a crypto exchange platform established by bryan amstrong & fred ersam on June 20, 2012, and has no physical headquarters.

Jaclyn Sales, representative of world coinbaseelaborated on the situation, reporting that the links were removed from the cryptocurrency exchange’s website as Reuters highlighted the risks this week. She said her team is also improving security measures, particularly automatically created web pages.

The Nasdaq-listed company offers informational pages on investing in the tokens, and these were not available to trade within their app or wallet; instead, they provide market advice with informational content rather than anything that is actively involved in trading races, such as buying coins (or “tokens”) directly from an address right now.

Response from the CoinMarketCap team

One vendor said its website automatically generates pages from CoinMarketCap data with a disclaimer that the data has errors but can help people decide to invest in virtual currencies like Bitcoin or Ethereum.

Bitcoin price is down 2.3% today after a decent recovery in the last seven days. | Fountain: BTC/USD at Tradingview.com

CoinMarketCap did not show any knowledge about the Coinbase pages. According to their Vice President of Operations and Growth, Shaun Heng, they never partnered with Coinbase on the pages in particular.

Sales did not clarify whether Coinbase observes price fluctuations in the coins whose information was available on the discarded pages. But Coinbase would “build a stronger disclaimer for pages that are automatically created,” Coinbase officials told Reuters via email on Thursday.

Coinbase planned to “create a process to remove any other pages that CoinMarketCap has flagged as scams,” Sales said, also reporting that “assets related to known scams could not be traded on the exchange.”

DeFi100 removal from Coinbase

One of the pages dropped by Coinbase featured DeFi100 and educated people to check out CoinMarketCap and explore where it could be purchased.

But the DeFi100 page on CoinMarketCap warns: “We have gotten several reports that this mission has come out as a fraud. Please Be Careful.”

CoinMarketCap, which does not offer cryptocurrency trading on its site, says that DeFi100 tokens have shown no trading activity since Nov. 14.

The DeFi100 website https://defi100.org and the Medium blog webpage https://wrapp3d.medium.com are offline. The last tweet appeared in May of last year.

CoinMarketCap did not respond to requests for comment on DeFi100 or its warning.

Twitter users claimed in May 2021 that DeFi100 had performed a “rug pull,” where shareholders deposit funds into fake companies before a coin’s designers keep the funds.

DeFi100 objected to the statements in the latest tweets on May 23. However, it was confusing for traders to take losses in the hope of “getting the project back on its feet”.

The company did not respond to Reuters requests for comment and it is unknown if they will respond or provide a response.

Coinbase mercenary removal

Coinbase has now banned the showcase page for yet another new cryptocurrency. This time it is called “Mercenary”, and like DeFi100 before it, and many others that are not available in the Coinbase app or wallet.

Mercenary was launched in January and had the highest price level of almost $20.

According to information from CoinMarketCap, Mercenary fell from $8 to a fraction in a matter of minutes on January 26, and since then, its price has not recovered.

PeckShield, a Blockchain security firm, tweeted on Jan. 26 that the rug removed Mercenary and advised buyers to stay away from it.

Reuters was unable to reach Mercenary because its website and Twitter page were offline.

Coinbase’s page on Mercenary was first featured by CoinMarketCap in January. However, when pressed for information on whether or not they removed it from their system after this discovery, which would indicate whether any removal was taking place, the company declined to comment.

Coinbase also removed a page on a token by the name of squid game, and this symbolic race to almost zero in November. According to cybersecurity experts we contacted on the matter, that too was a rug pull. The coin was no longer present in the Coinbase app or wallet.

When the project fell apart, it caused an internet frenzy. As a result, Twitter suspended his account for violating the rules and removing all evidence of what happened behind the scenes.

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Much has been made of what might have happened to the developers behind SQUID. In November, they shut down their project, announcing on Telegram that “someone was trying to hack them and they were abandoning it for good.”

                    Featured image by Pixabay and chart from Tradingview.com