A blockchain security firm tried to warn users of an imminent rug pull surrounding a crypto project, but investors became angry and fired back. The firm rescinded the security alert. Then, the project it accused of being a rug pull pulled the plug.
This is the story of CertiK, a blockchain security firm just trying to do its job, the users who tried to stop it from doing so, and the project, Crypto Cars, that (perhaps gleefully) turned its back on its users.
Back in 2022, CertiK issued a “rug pull” alert for a Vietnamese Web3 gaming project called “Crypto Cars,” which claimed to have over 700,000 users. At the time, the project’s native token was rapidly falling in price, its website was temporarily down, and its developers said that it would no longer respond on its Telegram due to the Lunar New Year holiday celebrated in Vietnam. Considering the situation, the alert made sense — until angry community members pressured CertiK to retract its statement. But when Cointelegraph attempted to follow up with the project on Aug. 1, 2023, it had long ago shut its doors.
Screenshot of CertiK’s rug pull alert on Crypto Cars in 2022. Source: Twitter
CertiK had previously warned investors to avoid interacting with the nonfungible token “racing-based play-to-earn” project. The firm announced on Twitter that it had identified the project as a “rug pull” and highlighted that its website and Telegram channel had been shut down.
Despite its good intentions, users were quick to go after CertiK and argued that the community alert published by the on-chain security company was “false.” Community members highlighted that the project’s website was still up and its Telegram account was still functional. Yielding to a combination of pressure and seemingly legitimate evidence at the time, the blockchain security firm retracted its rug pull alert and deemed it a “false alarm.”
One of the final statements posted on Crypto Cars’ Telegram before its shutdown. Source: Telegram
After retracting the alert,…
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