Following news that the deployer of Grand Base protocol produced millions of new tokens, there was a almost complete loss of value for its token, sparking worries of an imminent exit scam or rug pull.
On the Ethereum-alternative network, Base, there are suspicions that the decentralized finance protocol called Grand Base may have carried out a “rug pull.” This was discovered after members of the cryptocurrency community observed a large minting event through the protocol’s deployer’s address. According to user @0xkinnif, on April 15th, the deployer produced an extra 22.5 million GB tokens (valued at approximately $47 million), which caused the token price to drop drastically by almost 100% to just $0.0049.
.@grandbase_fi deployer minting tokens out of thin air?
— kinnif (@0xkinnif) April 15, 2024
After the occurrence, a representative for the project spoke about the issue in a Telegram group, explaining that the minting was due to an exploit of the project’s deployer wallet. The representative eased users’ worries by stating that the team is working closely with MEXC cryptocurrency exchange to stop trades involving the manipulated tokens.
#PeckShieldAlert #slippage Grand Base $GB has dropped -96% #BaseChain
— PeckShieldAlert (@PeckShieldAlert) April 15, 2024
In the beginning of 2024, Grand Base was introduced as a platform for buying and selling decentralized real-world asset (RWAs) contracts. This innovative marketplace allowed investors to gain access to RWAs without actually owning the underlying assets. The project quickly gained popularity, with its GB token seeing massive daily trading volumes of millions of dollars, based on CoinGecko’s data.
Despite an auspicious start, the project encountered criticism due to a flaw in its smart contract. Specifically, this issue enabled developers to generate an infinite number of new tokens without restriction. This concern was brought up by CoinGecko on the project’s GB price page. At present, MEXC has yet to release any official announcements regarding this matter. The means through which the exploiter managed to penetrate the deployer wallet remains a mystery as well.
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2024-04-15 13:15