Last Monday (22), Bitcoin investors and enthusiasts gathered to celebrate “Bitcoin Pizza Day”, marking the then programmer’s birthday Laszlo Hanyecz bought two pizzas in 2010 for 10,000 bitcoins – an amount currently valued at more than $260 million.
While many shared the moments on social media, criminals took the opportunity to scam investors.
By creating pizza-themed memecoins, scammers were able to collect hundreds of thousands of dollars in a matter of days.
Four of these memecoins — EthPizza, BPizza, BTCPizza and PizzaDay — stolen more than 300 thousand dollars in total, about 1.4 million reais, as reported by dextools.
Backstroke
After buying the coins, investors could no longer sell like the developers of the BPizzachanged the sales rate to 100%, which would make it unfeasible for investors to sell it.
Meanwhile, the Eth Pizza made transfers and sales of tokens impossible shortly after stealing US$38,000, about R$188 thousand, which the coup characterized as a ‘rug pull’, or ‘rug pull’, in translation.
The so-called “back pull” is a tactic used in the world of cryptocurrencies and digital tokens to mislead investors.
It occurs when the developers of a project or the team behind a token suddenly abandon the project, taking investor funds with them.
Typically, a “back pull” starts with creating a digital token that appears legit and promising.
Developers publicize the project, claiming it has a worthwhile purpose and offering investment opportunities. Investors are encouraged to purchase the token and participate in the project.
However, once enough investors have bought the token and deposited their funds, the developers perform the “back pull”.
They remove all funds deposited by investors and often quickly sell tokens for other cryptocurrencies. This leaves investors with worthless tokens and no way to recover their funds.
“Back pulls” are common in lesser-known cryptocurrency projects where investors are easily lured by the promise of high financial returns.
That said, it is important for investors to avoid buying memecoins or projects that promise profitability.
Source: Live Coins
Barry Siefert is an accomplished journalist and author at The Nation View. He is known for his expertise in the field of cryptocurrency, and has written extensively on the topic. With a background in finance and economics, Barry has a deep understanding of the underlying technology and market forces that drive the crypto industry.
