Polywhale Finance founders accused of rug pull amid abrupt shut down
Developers of Polywhale Finance shut the project down and sold most of their tokens, community member describes the incident as a “soft rug”, a situation when project founders abandon a project after dumping their tokens on the market.
Developers of Polywhale Finance, a leading yield farm on the Polygon network, have abandoned the project in what appears to be an elaborate exit scam worth over $1 million, cryptocurrency news outlet Crypto Briefing reported Monday.
Polywhale Finance’s founders are being accused of pulling a “soft rug” exit scam by selling their tokens during the latest crypto market price collapse. In a Telegram group devoted to the project, Polywhale Finance cited poor tokenomics, a negative market outlook and competition as the biggest reasons for folding. However, community members have attributed the hasty exit to malicious intent.
The official telegram of Polywhale Finance has been shuttered permanently. Disgruntled community members have since started a new Telegram group called “Polywhale Rugged,” where the pinned message reads:
“ATTENTION: THE [TREASURY] WALLET HAS BEEN DRAINED ALMOST ENTIRELY INTO THE DEV WALLET AND then 1.04 MILLION REDEEMED FROM THERE.”
