Colin Wu, a well-known crypto writer, claims that the educational initiative XIRTAM just carried out a rugpull of 2,000 ETH, which is equal to $3.5 million. According to reports, CultDAO, which just seven days ago declared its support for XIRTAM, provided the funding. CultDAO said that the project had received $2 million for its token presale.
The price of the CultDAO token has significantly dropped by more than 30% in only one day as a result of the announcement of XIRTAM’s rugpull. This comes after the token surged by 150% yesterday in response to a tweet from Elon Musk that simply said “Cult / Culture.” The revelation of XIRTAM’s fraud has, sadly, overshadowed the benefits garnered by this tweet for CultDAO.
In response to complaints from impacted consumers, Binance has blocked the money that the fake XIRTAM project sent to the exchange. Public response to the incident has not yet been received by CultDAO.
What is a rugpull?
A rugpull is a form of scam when the project team or developers entice investors by generating buzz and excitement about their cryptocurrency or token. The crew abruptly sells off its assets and disappears once the project has amassed a significant amount of money or a particular market cap, leaving investors with worthless tokens or coins.
