CertiK’s identification of CryptoCars as “rug pull” was a false alarm

During a market downturn, rumors of cryptocurrency bans and decentralized finance (DeFi) scams, blockchain enthusiasts can be very sensitive to the smallest anomalies in the projects they follow, sometimes falsely fearing that things will worsen. The day before, CertiK, the leading cybersecurity ranking platform in the blockchain space, tweeted a warning about CryptoCars, claiming it was a “rug pull” (a term in which crypto developers suddenly abandon a project and roll away without warning. investor funds). However, staff quickly deleted the post as it was a false alarm.

Via a series of Twitter screenshots obtained by Cointelegraph, CertiK first claimed that CrytoCars’ website and Telegram were down. However, users were quick to point out that the CryptoCars website and Telegram app were still working, causing CertiK to dismiss the community alert.

According to the developers of CryptoCars, the project’s Telegram chats will be temporarily closed “until the end of Chinese New Year from January 27 to February 7.” The development team of CryptoCars is located in Vietnam, which is celebrating the Lunar New Year holiday.

A source at CertiK released the following statement to Cointelegraph about the incident:

“Incident reporting, while complex, is inherently fast and aims to alert citizens to the latest suspicious activity. In this case, we noticed that [their] Telegram went offline, funding dropped to zero, and the $CCARs website was unable to Use. This raises an alert for a possible rug pull.”

Despite this mistake, CertiK has done a lot of good for the blockchain community. Just a day earlier, it issued a verified community alert for Qubit Finance after the protocol suffered an $80 million hack.

Launched in September 2021, CryptoCars is a non-fungible token (NFT) racing game. In the play-and-earn mode, players are required to purchase NFT cars minted on Binance Smart Chain for 6600 CCAR through their developer-created blind box, or from another user for a starting price of 490 CCAR. According to its official website, the project has 721,683 players, 582,666 NFT cars, and 248.8 million in-game transactions. It also has more than 124,500 followers on Twitter.

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/certiks-identification-of-cryptocars-as-rug-pull-was-a-false-alarm/
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