Farm Finance’s Total Rugpull!

By: P2E News | January 30, 2022
Farm Finance’s Total Rugpull!

When was the last time that you’ve seen a coin lose more than 99.5% of its market value? That sounds like a nightmarish situation to anyone out there, no?

Enter Farm Finance, a blockchain game project by some Vietnamese developers. According to their last communication log on Telegram, they claimed that the project was hacked. And stated that they have only raised a total of 152 BNB (~$60,000/P3 million) overall. They also added that they prepared a public Google Forms channel to address concerns regarding refunds. Stating that they are “willing” to refund the “remaining “51.69 BNB (~$20,000/P1 million) to their users.

In other words, Farm Finance has turned into a rugpull.

For those of us who might not know what a rugpull is, here are the most common definitions to go by:

  • When developers run away maliciously with the assets of the players and investors. Closing down all the assets that denote their online presence.
  • When developers stop supporting and working on a particular project. Leading to the crashing of the project’s assets and massive losses for the investors.
  • When developers act as if they are going on a holiday and/or claim that they were hacked. Thus leading to the total wipeout of the project’s value.

One surprising thing is that some of the game’s official social media channels are still available at the time of writing. Upon checking, they last had a Twitter post on January 25; though that’s the last official post that the social media team posted. However, the Facebook page is totally unreachable at the moment.

The other surprising thing regarding the project is that Farm Finance is shown to have passed the audit done by SolidProof, a German-based blockchain auditing firm. It’s not CertiK, but nothing short of a P2E gaming connoisseur would spot the difference. They also passed an audit by Tech Audit. However, we noticed that there’s no publicly available information regarding the firm on the internet. On both audits, there were multiple disclaimers regarding the project. Again, Farm Finances rugpull is a clear reminder that passing audits won’t guarantee that the project will stay afloat.

What are your thoughts?

In hindsight, the only few signs that the project had red flags were the fact that the developers did not have any online presence on the internet (apart from a name and an avatar on the official website) as well as not having any other financial partners onboard. The developers even conducted AMAs from time to time, based on a quick check of their prior social media activity. With the increase in sophistication of these “rugpull projects” that have massive marketing and elaborate “trust-building” schemes, it’s a good time to remind ourselves that we should only pick projects that have shown resolve to stay the course.

We here at P2E News sincerely hope that these kinds of rugpull projects will never happen again in the foreseeable future. However, it’s clear that there will always be people ready to exploit blockchain technology and the P2E/NFT gaming craze to extract money from investors who want to find a way into the metaverse. We all need to exercise a degree of caution when investing in any type of P2E or NFT game. 

 

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DISCLAIMER: None of the writings on the website constitute financial advice: P2E News is intended to be a P2E gaming news and updates portal, discussion hub and content/opinion/review aggregator. Please do your own research before investing in any NFT/P2E game out there. Better yet, consult someone within the profession to form an informed stance on your possible investments. For more leaks, news, and tutorials, always check in at P2ENews.com and follow us on social media.

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