Investing.com - Financial Markets Worldwide
🔴 Markets are down. Every single member in our 120K+ community knows what to do about it. You can too.Recession-Resistant Stocks

CULT Down 30% Day After Elon Musk Pump as CultDAO-Backed Project Rugpulled

Published 2023-05-03, 10:14 a/m
© Reuters. CULT Down 30% Day After Elon Musk Pump as CultDAO-Backed Project Rugpulled

U.Today - According to , a prominent crypto journalist, an educational project called XIRTAM has recently conducted a rugpull worth 2,000 ETH, which is equivalent to $3.5 million. The project was reportedly funded by CultDAO, which just seven days ago announced its support for XIRTAM, stating that the project had raised $2 million for its token presale.

The news of XIRTAM's rugpull has had a significant impact on CultDAO token's price, which has fallen by more than 30% in just one day. This comes after the token experienced a surge of 150% yesterday, following a tweet by that just said "Cult / Culture." Unfortunately for CultDAO, the gains made from this tweet have now been offset by the news of XIRTAM's scam.

CULT to USD by

has responded to affected users' appeals and has frozen the funds transferred to the exchange by the fraudulent XIRTAM project. CultDAO has not yet had any public reaction to the incident.

What is a rugpull?

is a type of fraudulent activity in which the project team or developers lure in investors by creating hype and excitement around their cryptocurrency or token. Once the project gains substantial funds or reaches a certain market cap, the team liquidates their holdings without warning and vanishes, leaving investors with worthless tokens or coins.

This article was originally published on U.Today

Latest comments

Install Our App
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.