Wallets associated with the Teddy Doge (TEDDY) project sold more than $4.5 million worth of tokens on July 23-24, PeckShield said. The price of an asset based on the BNB Chain has fallen to zero.
Addresses connected to the TEDDY exchange contract received a total of ~10,000 BNB ($2.5 million) and ~2 million BUSD. The funds were gradually transferred to the Binance exchange.
“The installer deployed the contract and sent a large amount of TEDDY to the address 0xdbe8ef79a1a7b57fbb73048192edf6427e8a5552, and then pumped and brought down the price of the token,” the experts explained.
They called the incident a “soft version” of the rug pull. This is a scam where the team suddenly quits the project, sells all the tokens, and withdraws the liquidity.
Sooho CEO Jisoo Park agreed with PeckShield in a comment to CoinDesk :
“Instead of cheating with the code, it seems that the assets allocated to the manager’s account have been distributed and sold in bulk. It’s not a hack, it’s a rug pull. But it’s not clear if they abandoned the project, so you can call it softrug.”
The project administrators stated that there was an error that they understood. Also, the developers “temporarily” stopped the work of the cross-chain bridge.
“We are actively discussing with the exchange the next step to replace TEDDY with new DRAC tokens, we apologize,” they wrote in the following tweet .
According to CoinGecko, the token has lost 99.9% in price over the past 24 hours. At the maximum in February 2022, the asset was worth $0.003. The leading trading platforms for TEDDY are XT.COM and BKEX, with a daily trading volume of about $8 million.
