The price of meme coin Teddy Doge ($TEDDY) crashed by over 99% following news that the project engaged in a ‘soft’ rug pull
The Rug Pull
Teddy Doge offered investors a platform for token swaps, NFTs, and cross-chain products. However, it was reported by security firm PeckShield (25/07/22) that BNB-based cryptocurrency Teddy Doge orchestrated a ‘soft’ rug pull after wallets connected to the project’s developers sold Teddy Doge in order to purchase other cryptocurrencies.
The rug pull occurred as wallets connected to the project’s deployer contract quickly exchanged $TEDDY tokens en masse for wrapped BNB (WBNB). Following this swap, the Wrapped BNB was then converted to BNB and the BUSD stablecoin, before it was sent to the Binance exchange likely to be liquidated.
PeckShield referred to this attack as a ‘soft’ rug pull since the tokens were moved from a wallet associated with the Teddy Doge team members instead of being stolen, marking it as a rug pull rather than a hack. The word ‘soft’ is used because it’s still uncertain if the team has fully left the project.
#PeckShieldAlert #rugpull TeddyDoge @DRAC_Network is soft rugpull. $Teddy has dropped -99.4%. The assets currently sit in https://t.co/3zu55iZAWX (accumulatively receive ~10k $BNB & 2m $BUSD) and are slowly transferred to @Binance pic.twitter.com/I48dWkLIOE
— PeckShieldAlert (@PeckShieldAlert) July 25, 2022
The project was in the middle of rebranding to the Drac Network ($DRAC). On the official Drac Network Twitter account, the team announced that they had temporarily paused the cross-chain bridge and advised investors not to purchase any $TEDDY tokens. While the team has promised to give $TEDDY holders the new $DRAC token, it’s important to mention that the DracScan website is currently down.
While the Teddy Doge situation is unfortunate, there are still plenty of legitimate projects primed for investment. For example, Metaverse play-to-earn platform Battle Infinity (IBAT), which is one of the best crypto presales on the market. The project has already raised over $1 million in the two weeks since its release and aims to a P2E games platform that will feature a series of player-versus-player games, a fantasy sports league, an NFT marketplace, and more.
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