Coinbase removes cryptocurrency hyperlinks after ‘rug pull’ warnings By Reuters



© Reuters. FILE PHOTO: The brand for Coinbase International Inc, the largest U.S. cryptocurrency alternate, is displayed on the Nasdaq MarketSite jumbotron and others at Instances Sq. in New York, U.S., April 14, 2021. REUTERS/Shannon Stapleton/File Picture


By Tom Wilson and Hannah Lang

LONDON/WASHINGTON (Reuters) – Coinbase (NASDAQ:) International has eliminated ‘tips on how to purchase’ directions for no less than three crypto tokens which have been the topic of ‘rug pull’ warnings that traders might lose their cash, saying on Thursday it plans to enhance safeguards.

Jaclyn Gross sales, a spokesperson for Coinbase, stated the hyperlinks have been faraway from the cryptocurrency alternate’s web site after they have been delivered to its consideration this week by Reuters. There would even be an improve in safeguards on its auto-created webpages, she stated.

Nasdaq-listed Coinbase options pages providing tips about investing in tokens and the pages in query have been informational somewhat than making them accessible to commerce on its app or pockets.

Gross sales stated the pages, which contained a disclaimer that the knowledge was not funding recommendation and that the alternate was not accountable for “errors and delays”, have been created mechanically from data carried by knowledge web site CoinMarketCap.

CoinMarketCap stated it was not conscious of the Coinbase pages and its vice-president of progress and operations Shaun Heng stated there was not a partnership with Coinbase.

Gross sales stated it was not clear whether or not Coinbase ran checks on the cash whose data pages it eliminated. Coinbase would “construct a extra sturdy disclaimer for the pages that are being auto-created,” the alternate informed Reuters on Thursday through electronic mail.

Coinbase would additionally “construct a course of to take down every other pages which CoinMarketCap has flagged as probably being scams,” it stated, including that “property which relate to identified scams weren’t tradeable on the alternate”.


One web page eliminated by Coinbase featured DeFi100 and informed customers to verify CoinMarketCap to seek out out the place it might be purchased.

Nevertheless, the DeFi100 web page on CoinMarketCap warns: “We’ve obtained a number of stories that this venture has exited as a rip-off. Please train warning.”

CoinMarketCap, which doesn’t promote cryptocurrencies on its website, says DeFi100’s tokens haven’t recorded any each day buying and selling volumes since Nov. 14.

DeFi100’s web site and Medium weblog web page are offline. Its final tweet was in Might final yr.

CoinMarketCap didn’t reply to requests for touch upon DeFi100 or its warning.

Twitter (NYSE:) customers alleged in Might that DeFi100 had carried out a “rug pull”, the place traders deposit cash in phoney tasks earlier than a coin’s builders make off with the funds.

DeFi100 denied the allegations in one in all its final tweets, on Might 23. Acknowledging traders had suffered losses, it stated it hoped to “convey the venture again on its toes”.

It didn’t reply to Reuters requests for remark.


Coinbase additionally took down a web page that includes a token referred to as Mercenary which, like DeFi100, was not accessible on Coinbase’s app or pockets.

Mercenary launched in January, hitting a excessive of virtually $20. However on Jan. 26 it fell inside minutes from simply over $8 to a fraction of a cent and its worth has not since recovered, CoinMarketCap knowledge reveals.

Blockchain safety agency PeckShield tweeted on Jan. 26 that Mercenary had been hit by a rug pull and warned consumers off it.

Reuters couldn’t contact Mercenary, whereas its web site and Twitter web page are each offline.

It’s unclear when Coinbase launched its web page on Mercenary, which archived webpages present CoinMarketCap first featured on Jan. 15. CoinMarketCap didn’t reply to a query on whether or not it had taken Mercenary off its system.

Coinbase has additionally taken down a web page on a token named after Squid Sport which crashed to virtually zero in November in what cyber safety consultants stated was one other rug pull. It additionally was not accessible on Coinbase’s app or pockets.

The web site and Medium account behind the token have been shortly taken offline after the venture unravelled and stay down. Twitter additionally suspended the venture’s account, saying that it violated the community’s guidelines.

The builders behind SQUID stated on Telegram in November that they have been abandoning the token, saying “somebody is making an attempt to hack our venture”.


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