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Developers Vanish & More Than $600k Disappears From The DeFi Project Blur Finance
The project's Twitter feed and Discord channel have been deleted.
Kabir V.
10:53 10th Aug, 2022
Markets

Another day, another apparent rug pull.

The developers behind Blur Finance, a yield aggregator based on BNB Chain and Polygon, appear to have suddenly abandoned the project and deleted its social media channels. More than $600,000 worth of tokens have vanished in the process, security firm PeckShield said on Wednesday.

The protocol's website is returning an invalid certificate, and a link to its Discord channel results in an "invite invalid" message.

The move is a textbook rug pull, a scam carried out by developers who launch a working decentralized finance (DeFi) application and carry out social media marketing to popularize it before issuing a token and listing it on a decentralized exchange (DEX). After investors have purchased the tokens in the hopes of a positive return, the developers shut up shop and disappear.

The liquidity that investors provide can run into millions of dollars. Last week investors in Polygon-based Web3 game Dragoma appear to have been subject to a rug pull valued at $3.5 million. A Chainalysis report previously estimated that rug pulls totaled some $2.8 billion in 2021 alone.

Blur had over 754 holders on BNB Chain, trackers show. The project recently integrated with Polygon and provided annualized yields of some 4,000% as of last week. The contract was created July 7.

The project’s BLR token fell 99% following the rug pull, trading at $.00064 at writing time. The price peaked at 6 cents last week.

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