Alleged rug pull leads to a sharp 43% dive in SPCT token value
Spectra Chain’s native token, SPCT, saw a significant decline of 43% on Friday morning after allegations of a potential rug pull by the team emerged. As of now, the token is trading at $0.0094, marking a 27% drop in the last 24 hours. This is a drastic decrease from its all-time high of $0.05065 on April 9, 2024, with the current price being 81.66% lower than its peak.
Spectra Chain, which recently launched its Layer 2 solutions on April 16, is known for its Proof of Stake consensus mechanism that aims to improve scalability, reduce transaction costs, and enable the development of complex smart contracts. The ecosystem also includes a Chain Explorer for enhanced transparency and security, a Decentralized Exchange (DEX), and an NFT Marketplace for digital asset trading.
However, the community’s trust was shaken when several SPCT token holders reported on the social media platform X that Spectra Chain’s official Telegram channel had been suddenly closed. Adding to the situation, a user named ‘lean’ alleged that the founders of Spectra Chain were previously involved in other projects that were known for fraudulent activities. The user found connections between the founders of Spectra Chain and those involved in VC Spectra, a project that had been identified as a rug pull. ‘Lean’ suggested that if the team’s promised transparency or “team dox” turned out to be deceptive or indefinitely delayed, the project might face a collapse.
Similar incidents have occurred in the crypto industry. For example, on April 15, the token value of Grand Base dropped nearly 100% after the protocol’s deployer minted millions of new tokens. This sudden increase in token supply raised suspicions of a rug pull, which were later attributed to an exploit by the project’s spokesperson in a statement on a Telegram channel.
It is important to note that these types of situations are not isolated within the crypto industry. Investors and community members should remain cautious and conduct thorough research before engaging with any project.
