Fraudsters exploited the popularity of DeFi projects to deceive investors

Unknown attackers took advantage of investors‘ interest in the decentralised finance sector (DeFi) and two high-profile projects – the Keep3r Network (KP3R) by André Kronier, founder of yEarn Finance, and cVault.finance (CORE). The attention of the community to „empty“ tokens was attracted by the user Degenomics.

Fraudsters misled users with similar names – KPER and KORE.

According to CoinGecko, a $12.28 KPER appeared on 30 October. The very next day it reached its maximum at $22.83, but after a few hours it collapsed to zero.

Данные: CoinGecko.

A similar pattern with KORE: on 30 October the token was valued at $123.25 and on 1 November it fell to zero from $111.62.

Data: CoinGecko.

The original KP3R and CORE retain their multimillion dollar capitalisation and are still actively traded. The clone creators have taken advantage of the unlimited token issuance function available in contracts to withdraw user assets from their respective liquidity pools.

Su Zhu, CEO of the Three Arrows Capital Crypto Profit Revolution, believes that the preponderance of fraudsters and forks of known projects may indicate a peak in the market sector.

It should be reminded that cryptocurrency investors incurred losses after the implementation of the Keep3r Network Kronier token and dump scheme.

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