DeFi Platform Kokomo Finance Mysteriously Disappears from Public Domain, Suspectly Pulls $4 Million Tapestry: Reports

news7f03/27/2023

1 2 minutes read

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Cryptocurrency scams have a direct impact on the crypto community and impact both the crypto market and individual investors. While the crypto market saw a strong recovery this month amid the collapse of centralized banks in the US, a new scam seems to have come to light. In what is being suspected to be a “catastrophic” scam, the DeFi Kokomo Finance platform has mysteriously disappeared from all social media platforms, causing fear and anxiety in the money community. electronically, including investors who have linked their funds to the platform. A total of $4 million (about Rs 35) could be in jeopardy if this proves to be an exit scam.

Kokomo Finance describes itself as an open source and non-custodial lending protocol within the now defunct protocol. website. Blockchain research platform CertiK, alerted the crypto community to a potential carpet-pulling scam over the weekend after observing that Kokomo’s native KOKO token dropped 95% overnight. Soon after, the DeFi platform’s Twitter, Discord, and Telegram accounts also disappeared. The platform is built on the Optimism Layer-2 blockchain built by Ethereum developers. According to CertiK, this is the largest such incident on the Optimistic blockchain.

It is suspected that the KOKO implementer adjusted and reset the reward rate for investors who staked their tokens in the lending protocol. Borrowing functionality on the platform is also suddenly paused, CoinTelegraph report speak.

A deeper dive into Kokomo’s smart contract audit reveals that KOKO token holders have a one-time grant to mint 45% of the maximum supply to a random address. Kokomo allows users to borrow cryptocurrencies and stablecoins without a credit check.

As of Monday, March 27, its KOKO governance token has dropped by 98.30% to trade at $0.0006587820 (about Rs. Forex empire.

In the field of cryptocurrency, “rug pull” is a type of scam in which a project or a cryptocurrency is launched and after the scammers raise enough funds from the project, they abandon the project. and escaped with the spoils.

Cryptocurrency scams increased by 81% in 2021 with carpet-dragging scams becoming the most popular category. Chainalysis said in a report that carpet pulling has cost the crypto community more than $2.8 billion (approximately Rs 21,333) in 2021. report at that time.

Over the course of 2022, more than 117,620 scam tokens have been hit the global crypto market in an attempt to scam some people with their hard earned money, said Solidus Labs, a cryptocurrency trade research organization. said in his report. “Carpet Pulling Report”.

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