LeetSwap, Leading Decentralized Exchange on Base, Pauses Trading Amidst Compromised Liquidity Pools and Meme Coin Frenzy
In a recent development, LeetSwap, the prominent decentralized exchange (DEX) running on Base, an Ethereum layer-2 solution by Coinbase, has halted trading activities due to potential compromises in its liquidity pools. The DEX’s team took swift action and pulled the circuit breaker after suspecting that certain liquidity pools may have been compromised. As the investigation is underway, the platform’s trading remains paused.
In the aftermath of a massive rug pull scam involving BALD tokens, the liquidity on LeetSwap has taken a significant hit. Meme coins, a category of cryptocurrencies that derive their value from internet memes and viral content, have been gaining popularity on Base’s platform since it opened for developer activity on July 13. Currently, there are 100 meme coins listed on LeetSwap, attracting considerable attention from traders and investors alike.
Notably, BALD token, potentially linked to Coinbase CEO Brian Armstrong’s shaved head, garnered immense trading interest, accounting for over half of Sunday’s $200 million trading volume for meme coins. Shortly after its launch on July 30, BALD’s price surged by more than 3000%. However, the token’s value experienced a devastating blow when its developer withdrew $25.6 million worth of liquidity from LeetSwap, causing the token’s market capitalization to plummet over 92% within minutes.
Blockchain sleuths are raising suspicions about the involvement of Sam Bankam-Fried, the notorious founder of FTX, in the BALD rug pull. As LeetSwap grapples with the aftermath of the scam, the DEX currently holds deposits worth $7.17 million, with efforts underway to recover the locked liquidity.
The incident serves as a stark reminder of the risks associated with meme coins and underscores the importance of due diligence and caution while engaging in the cryptocurrency market. Investors and traders are urged to remain vigilant and exercise prudence in their decision-making. As the investigation continues, the community awaits further updates from LeetSwap’s team regarding the status of trading activities and liquidity pool recovery.
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