A new cryptocurrency scam has been uncovered involving a token called TREAT, allegedly linked to the Shiba Inu (SHIB) ecosystem.
The token's developer, who remained anonymous, managed to trick investors into purchasing the token by creating a fake link with SHIB, then withdrawing all liquidity from the pool, resetting the coin's value.
The scam was complicated as the developer used a Kucoin address to fund the project with 5 ETH and then transferred 230 million tokens to another address associated with the SHIB ecosystem.
This transfer was made as part of the contract creation process, making it difficult to detect by potential investors.
The developer also sent SHIB tokens to several SHIB ecosystem wallets and the treasury itself, creating an illusion of legitimacy and confirmation. However, these transactions were actually part of the scam because it was intended to distract investors from the fact that the developer had full control over the token supply and could sell it at any time.
Many investors were convinced by its promise of high returns and its association with one of the most popular meme coins on the market, SHIB. However, as soon as the token reached its highest price, the developer launched the rugpull scam and pulled all ETH from the liquidity pool, leaving investors with worthless tokens.
However, with the developer ending the scam attempt quite early, only 17 Ethereums were lost in total.
*Not investment advice.
