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.