The developers at Polywhale Finance, a leading revenue farm on the Polygon Network, have abandoned the project in what appears to be a lavish exit scam valued at over $ 1 million, cryptocurrency news agency Crypto Briefing reported on Monday.
The founders of Polywhale Finance are accused of pulling a “soft rug” exit scam by selling their tokens during the recent price drop in the crypto market. In a Telegram group dedicated to the project, Polywhale Finance cited poor tokenomics, negative market outlook and competition as the main reasons behind the collapse. However, community members have attributed the hasty exit to malicious intent.
For starters, the official Telegram group for Polywhale Finance was permanently closed and community members became increasingly convinced that the project involved fraud. Disgruntled community members have since formed a new Telegram group called “Polywhale Rugged,” where the pinned message is:
ATTENTION: THE [TREASURY] WALLET WAS ALMOST COMPLETELY REPLACED INTO THE DEV WALLET AND THEN 1.04 MILLION REDEEMED FROM THERE. “
According to a member named “Exceptional,” the treasury wallet had 5 million tokens on June 9th. Earlier in the day, a community member with the handle “SK” observed that the treasury wallet had shrunk to just 1.6 million. He was then banned from the chat room and his post was deleted.
“As of 12 noon UTC, this wallet is now ~ $ 200,000 with $ 1.4 million transferred to the developer wallet at around 1655 UTC,” the message said.
On its website, Polywhale Finance claims to have blocked a total of more than $ 3.6 billion across its entire platform. The yield farm was launched by an anonymous group in April 2021.
Connected: Polygon Commits $ 10 Million to Reach 1 Million Users with 0x API
Polygon has quickly become one of the most popular DeFi protocols in all of cryptocurrency. As Cointelegraph reported, during the height of the DeFi boom in May, Polygon registered 75,000 new active users over a seven-day period. The 1inch network was also expanded to Polygon last month to increase the aggregator’s sources of liquidity. Meanwhile, Ren announced in May that it had launched a bridge to Polygon for seven leading cryptocurrencies, including Bitcoin (BTC) and Dogecoin (DOGE).
Polygon was renamed from Matic Network in February 2021 and was one of the fastest growing projects during the bull market. Polygon’s token, still trading under the symbol MATIC, ranks 16th by market capitalization with a total network value of $ 7.6 billion.