CornerChain (CNR), The Rug Pull Coin That Makes Geger

Security company LokShield declares CornerChain CNR as a token rug pull. (photo: doc. CornerChain)

JAKARTA It hasn't stopped yet, the rug pull coin sticks to the surface. CornerChain (CNR), which is the main coin of Corner, a blockchain network that provides ledger services for businesses, has been declared a rug pull coin by crypto security firm LokShield, reported by U.Today.

LokShield himself announced in his Twitter post that the price of CNR fell 99.5 percent. The announcement was made by the security company on September 6 yesterday.

#PeckShieldAlert PeckShield has detected Cornerchain $CNR has dropped 99.5%. https://t.co/DzI5qJO5bUThe contract is created by @neotericfinance pic.twitter.com/xomGJmvrdw

— PeckShieldAlert (@PeckShieldAlert) September 6, 2022

The CNR token plunged 99.5 percent to nearly zero shortly after hitting an all-time high (ATH) at a price of 0.27 US dollars on September 6. Binance smart chain (BSC)-based token skyrocketed nearly 149,000 percent from an all-time low (ATL).

Cornerchain is trading on PancakeSwap (V2), a popular decentralized exchange (DEX), allowing the exchange of BEP-20 tokens on the BNB network. Pancakeswap V2 is the largest exchange in the BNB Chain ecosystem and one of the top DEX by its market share. Users can trade against collections of liquidity thanks to the exchange's automated market maker (AMM) architecture.

Looking at the Twitter account Cornerchain revealed most of the tweets were deleted, except for the contract address BSC posted on August 24. Taking a closer look at the response on Twitter revealed that most users complained that they could not sell CNR tokens.

An evil actor can streamline tokens to limit the ability of some investors to sell them while allowing others to be unrestricted. These sales limits are the main indicators of fraudulent or scamming projects.

Rug pull is a kind of crypto scam that occurs when a project pumps its token price before disappearing investors' funds. This situation leaves investors with assets that are no longer valuable.

Rug pull occurs when an dishonest developer creates a new crypto token, inflates its value and then extracts as much value as they can before leaving it until its value drops to zero. Rug pull is a type of decentralized financial exploitation (DeFi) and fraud committed by developers who take away investor funds.

Meanwhile, regulators such as the Securities and Exchange Commission and the authorities are not yet known whether to take action and hunt down token developers who commit rugby fraud modes like this or not.