Two small token projects appear to have gone down shortly after getting listed on decentralized exchange Uniswap, after investors poured funds into them.
As first reported by The Block both projects – Nugs.space (NUGS) and the Nexeum Protocol (NEXE) – disappeared. The first projects, China-based Nugs.space, blamed going down on a “smart contract bug,” claiming on social media that it’s “beyond repair.”
On social media, the team behind Nugs claimed that their tokens would “permanently remain untouched” in an Ethereum address, which currently contains over 100 million NUGS tokens in it. Nugs, per its website, was supposed to be a “fun escape” within the cryptocurrency space, with a total supply of 420 million.
Every NUGs transaction would incur a 2%, with 1% of the tokens being permanently burned and 1% being used to create a daily lottery held “at 04:20 china standard time.” The project’s website mentions NUGS should “not be considered an investment,” but on social media users revealed they invested in the cryptocurrency.
Ethereum blockchain data shows millions of NUGS tokens are pouring into the decentralized exchange Uniswap, presumably as users try to sell their holdings. On Uniswap the token started trading up after being listed, but soon plummeted.
Another token project, NEXE, appears to have exit scammed shortly after being listed on Uniswap. The project’s website has been taken down and its social media accounts have been deleted. Available data appears to show it was using some kind of buyback program to lure in investors.
Data from Uniswap.info shows that the token’s price plummeted by 99.24% shortly after listing, going from $0.13 to a $0.27 high, before plummeting to $0.0028 before its liquidity dried up.
It’s worth mentioning that anyone can create a token and list it on Uniswap. The hype surrounding some tokens and their listings has been reminiscent of the 2017 initial coin offering (ICO) bubble the cryptocurrency space went through. At the time, a token called the Useless Ethereum Token (UET), which blatantly admitted the tokens were meant to enrich “some ransom person on the internet,” raised over $300,000.
Featured image via Unsplash.