SPCT token plunges 43% amid allegations of a rug pull

On Friday morning, the value of Spectra Chain’s native token, SPCT, dropped sharply by 43%, as rumors surfaced suggesting that the project’s team might be involved in a “rug pull” – a type of scam where developers abandon their project and take away investors’ funds.

Currently, the token is priced at $0.0094 during this composition, representing a 27% decrease over the past 24 hours.

SPCT token plunges 43% amid allegations of a rug pull

The price of SPCT reached a record high of $0.05065 on April 9, 2024, but now stands at 81.66% less than that amount.

Spectra Chain, newly launched with Layer 2 solutions on April 16, is recognized for its Proof of Stake system, enhancing scalability, reducing transaction fees, and fostering advanced smart contract creation. The platform includes a Chain Explorer for heightened transparency and safety, a Decentralized Exchange (DEX) for asset trading, and an NFT Marketplace for digital collectibles.

Yet, trust within the community wavered after some SPCT token owners took to social media platform X to share their concerns, alleging that Spectra Chain’s official Telegram channel had suddenly been shut down without explanation.

Did @SpectraChain closed the telegram channel ? Or they blocked me ? Can anyone please confirm ?

— coinco (@SURAJ_041) April 7, 2024

Additionally troubling the predicament, a user named ‘lean’ claimed that the founders of Spectra Chain had past connections to questionable projects accused of fraudulent behavior.

The user discovered what seemed like links between the creators of Spectra Chain and individuals associated with VC Spectra, a past red flag case.

If the team’s commitment to transparency, also known as “team dox,” turns out to be false or continually postponed, the project could be at risk of failing imminently.

same devs as Gambit (rugged), VDZ (rugged) and NEX (slow rugging). SCAM!

— Diamond Pearl (@LoveAlwaysot5) April 18, 2024

According to a December 21 blog post on Medium by private investigator Michael Gugliotti, VC Spectra has been changing the launch dates and modifying their token goals on their website multiple times. This behavior adds to the growing suspicion.

Gugliotti brought up that one of my clients had their account suspended and communications stopped after speaking with someone who claimed to be an accounts manager. We have filed fraud reports about this incident with organizations such as the FBI, FTC, and SEC.

In the crypto world, this isn’t an unusual occurrence. For example, on April 15th, the value of Grand Base’s token plummeted almost entirely when its deployer produced millions of new tokens unexpectedly.

When the number of tokens suddenly grew larger, people started suspecting a scam known as a “rug pull.” This suspicion was later confirmed by the project representative through a message on their Telegram channel.

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2024-04-19 15:56