A new project called EtherWrapped kicked the token out of the air and then pulled the community carpet today.

Ether-wrapped trick after the airdrop

Another carpet move just hit Ethereum’s DeFi ecosystem.

EtherWrapped offers Ethereum users an analysis of their transaction history. The new project introduced the token Airdrop this morning. Authorized users can claim the project’s YEAR tokens from 09:30 a.m. (UTC + 8). Tokens are assigned according to users’ on-chain activity, which means more active users get more.

EtherWrapped announced the airdrop from a Twitter account that has since been deleted. The (unknown) team also checked the token contract on Etherscan which makes it look real. The announcement comes after two airdrops from OpenDAO and GasDAO, which were launched last week, possibly to capitalize on the ongoing hype about new tokens. More than 4,500 users have requested the Airdrop and YEAR will soon be available for trading on the Uniswap decentralized exchange.

Four hours after the token started, around 1:00 p.m., the price plummeted to almost zero. After the crash, some users suggested that the team pull the carpet through a “bait and flip” operation. Jordan Spence, CMO of MyCrypto, was one of the first to notice the event.

“Looks like YEAR has just been carpeted. Can’t sell / send. Can only buy, ”he did tweet at 13:15 (Synthetic Team time).

“Pull the Carpet” is a common crypto term used to describe incidents where a team abandons a project and takes money away from investors. Carpet drawing is particularly popular at DeFi. Fraud projects often sell most of the token supply after a community of investors is built, and the sudden deprivation of liquidity on decentralized exchanges causes prices to drop.

In this incident, the token contract creators hid the smart contract functionality “revokeOwnership”. You have the contract on Uniswap V2 addressed to the new owner, which means that owners are not allowed to sell their allotments. This is the point of the loophole as traders can still buy but not sell. As a result, prices go up and attract more buyers. Shortly afterwards, the EtherWrapped team sold its share of tokens and received over 30 ETH in various transactions.

The incident is reminiscent of other similar DeFi carpet pulls that occurred earlier this year. Another team successfully used the Netflix series Squid Game to launch the SQUID token in October and then sold the offer when the price rose 300,000% in a week, Bitcoin Magazine reported. The token lost 99.99% of its value and the team earned around $ 12 million.

This time around, YEAR fell from a price of around $ 0.0007 to almost zero. Team EtherWrapped also disappeared and deleted all of its social media channels.

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