A decentralized cryptocurrency exchange, announcing that it was experiencing “technical difficulties”, saw its cryptocurrency die within hours, with investors’ general distrust of its project.
In the month of November 2022, the fall of FTX marked the end of trust in centralized exchanges. This is because as customer balances were apparently used by the platforms in other negotiations, withdrawals were blocked and investors saw a general insolvency of the market.
Withdrawals from centralized exchanges (CEX) took over the networks, with many turning to decentralized platforms (DEX).
For example, the Bitcoin family has moved money from the CEX and sent it to the DEX. However, everything indicates that the choice for a decentralized operation should be made with the necessary caution.
Decentralized Exchange Sees Cryptocurrency Die After “Technical Issues” Announcement
There is still not much to say about the latest collapse of a cryptocurrency exchange, this time a decentralized platform.
That is because the cryptocurrency died within hours on Monday (5) after the decentralized broker announced it was experiencing technical issues.
According to an analysis by PeckShield, a digital security company, the LYM token dropped by 99% in less than 4 hours. The token was only on PancakeSwap, which represents the Lymex exchange.
#PeckShieldAlert $LYM has dropped -99.93% https://t.co/lxGk5JKmdk pic.twitter.com/PVFwHcTqfh
— PeckShieldAlert (@PeckShieldAlert) December 5, 2022
The Lymex brokerage has presented itself to investors in recent months as a reference in DEX. In addition, the brokerage advertised forex services, featuring country currency exchanges on its platform.
With the fall of FTX in November, the brokerage firm intensified its digital marketing, promising up to 500% returns. However, with the demise of the service, investors are now posting losses with the platform, which days earlier was said to be the “future of decentralized brokers”.
Amounts sent to Binance, customers suspect scam
In a note, Lymex published that it is experiencing a serious and unusual outage in its network, resulting in a large number of tokens being sent to just one wallet.
With funds lost across the team, DEX plans to release more details to its customers within 48 hours. Finally, the note apologizes for the inconvenience caused and indicates that new problems can better be prevented.
When analyzing through blockchain, specialists have already discovered that all the values extracted from the decentralized brokerage were concentrated in just one address. After the criminal action, the balance migrated to the Binance brokerage.
Customers thus suspect that the broker has pulled or scammed a carpet, and deploy the warning of possible scam using DEX. Even with the alarming signs, it is worth remembering that it is still not clear whether it is a scam, although with the fall the balance of LYM tokens is practically zero.
Source: Live Coins
Roy Brown is a renowned economist and author at The Nation View. He has a deep understanding of the global economy and its intricacies. He writes about a wide range of economic topics, including monetary policy, fiscal policy, international trade, and labor markets.
