The other night I was using DexTools to watch the price on some alts I own. I saw an address sell a significant amount of the coin I was watching, so like a curious cat I checked out the wallet on EtherScan. I saw that it had bought some super new coins (contracts created maybe 30 minutes prior, if not less) and I enjoy high risk activities so I decided to buy into a few of the coins myself to see where it went. One was called Quarter Horse (QUAR), one called Sushi Shiba (SUSHIB), and the other SpaceX Akita (SAKITA). I tried to find any sign of social media presence on any of them, but I was unable to come up with anything.
I got back from vacation and finally got to my work station PC instead of my chromebook and was looking into these coins. The last transactions were from the night of the 12th. Checking on EtherScan it clearly shows that the liquidity has been pulled, labeled as “Removed Liquidity with Permit”, leading me to believe the obvious that these were just rug pulls. I’m not too upset in the sense that I used little ETH on this and knew that this was a major risk area, but I’m just trying to understand the whole thing a bit better.
When I go to Uni it shows the value of the coins as some ungodly amount, 15k, 25k, etc. but obviously there’s no liquidity to swap it with, resulting in this.
I don’t know too much about rug pulls and this is my first real experience with them, so I’m just hoping to understand the whole thing a bit better. Was this a typical type of rug pull? Is this type of activity illegal? I have a hard time seeing anyone doing this shit facing any consequences outside of the universe paying karma in one way or another, but there were some transactions for 5 or more Ether. I don’t understand why the coins show as such a high value either, not that it really matters as in reality they are obviously worthless…anyway I’m just hoping to gain my knowledge of stuff like this a bit more, so any observations or input is appreciated.