A decentralized finance (defi) project that utilizes the Solana
blockchain called Luna Yield has allegedly committed a “rug pull,”
according to various individuals on social media. Reports indicate that
the investors who put funds into the project lost an estimated $6.7
million according to an “anonymous source.”
Luna Yield Creators Reportedly Dip Off With $6.7 Million in Funds, Solpad Platform Promises Compensation to IDO Participants
The world of defi has reportedly seen another rug pull but this time
in the Solana blockchain ecosystem, according to numerous reports.
Solana’s website that had a page dedicated to describing the Luna Yield
decentralized exchange (dex) aggregator protocol now shows a 404 error.
The aggregator project promised high yields and then suddenly the
platform went dark and users could not access the funds locked into the
dex aggregator.
The Luna Yield team was anonymous and the project developers allegedly got away with $6.7 million in tokens. Coindesk reporter Sebastian Sinclair details he was told
by an “anonymous source” that “$6.7 million in assets had been taken.”
Furthermore, Sinclair insisted that the team verified the amount via the
“SOL scan block explorer.” On various channels like Twitter, discussions concerning the subject are littered across social media.
The platform that helped launch the Luna Yield IDO, Solpad detailed
that the project would help compensate IDO participants who were
affected. “After internal discussion within Solpad Foundation, we have
finalized the compensation plan for Luna Yield IDO participants,” the
team tweeted.
“We will sort out the list and directly [distribute] the compensation
into the participant’s wallet (the same wallet that joined the IDO on
August 16th. We will compensate users in USDC, with a value equal to 60%
of the purchased amount.”
The official Solpad Twitter account further noted:
For example, if user A bought 400 USDC of allocation in
the round, he will get 400*60% = 240 USDC, airdrop directly user A
wallet. The distribution will start next week, and we expect it to
finish within a few days. Thank you so much for being so patient with
us.
Critics Warn Other Chains Like Cardano, Solana Daily Hopes Project Staves Off More Rug Pulls
The Luna Yield website has been taken down by the creators it seems and archive.org has crawled the platform
on various occasions, but has had a hard time showing the site. On
Twitter, one individual said that once Cardano upgrades to Alonzo
Purple, it too could see a rug pull like Solana (SOL) has seen this
week.
“The rug pull that recently occurred in the Solana ecosystem from
Luna Yield is something I can see happening in the Cardano ecosystem
literally days to weeks after Alonzo if proper scrutiny isn’t exercised
by the community involved,” the individual said. “Good tech isn’t immune to stupidity.”
The Twitter account Solana Daily told its 28,700 followers about the rug pull on August 20. “Rug pull on Solana,” Solana Daily detailed.
“Yesterday, [Solpad] announced that their second IDO of Luna Yield went
wrong, when the dev team of the project decided to shut down all the
social media and withdraw the liquidity. Hope that no more rug pulls
appear [in] our ecosystem.”
While SOL is up 66% in seven days
after the news went viral on social media, the price of SOL dipped by
1.8% against the U.S. dollar and down 3.8% against bitcoin (BTC).
source link : https://news.bitcoin.com/solana-based-defi-protocol-luna-yield-reportedly-rug-pulls-investors-6-7-million-taken/
